‘Inflation is too high and has been for too long,’ says Kevin Warsh as Fed announces rate hikes – live
News Source
•Wed, 16 Sep 2026 19:32:44 GMT
📰 What Happened
The US Federal Reserve has raised interest rates for the first time since 2023. The vote was 12 to 0. The benchmark rate now sits in a range of 3.75 percent to 4 percent.
Fed chair Kevin Warsh announced the move on Wednesday. He said inflation is too high and has been for too long. He added that this summer's readings do not show the trend has really improved.
Warsh declined to comment on President Donald Trump's repeated calls for cuts. He said the Fed stays in its own lane and makes its own decisions.
🔍 The Backstory
Trump chose Warsh to lead the Fed and expected him to cut rates. Trump has said the US should have the lowest rate in the world.
After the news, US share indexes fell. The S&P 500 dropped 0.9 percent and the Dow was down about 850 points.
A Republican lawmaker, Jason Smith, said rates should be falling, not rising. Democrat Brendan Boyle blamed the war with Iran and tariff taxes for driving prices up.
🎯 Why It Matters
Higher US rates push up the cost of borrowing in many countries. Mortgages, car loans and credit card bills can all get pricier. For savers, returns may improve.
The US Federal Reserve has raised interest rates for the first time since 2023. The vote was 12 to 0. The benchmark rate now sits in a range of 3.75 percent to 4 percent.
Fed chair Kevin Warsh announced the move on Wednesday. He said inflation is too high and has been for too long. He added that this summer's readings do not show the trend has really improved.
Warsh declined to comment on President Donald Trump's repeated calls for cuts. He said the Fed stays in its own lane and makes its own decisions.
Trump chose Warsh to lead the Fed and expected him to cut rates. Trump has said the US should have the lowest rate in the world.
After the news, US share indexes fell. The S&P 500 dropped 0.9 percent and the Dow was down about 850 points.
A Republican lawmaker, Jason Smith, said rates should be falling, not rising. Democrat Brendan Boyle blamed the war with Iran and tariff taxes for driving prices up.
Higher US rates push up the cost of borrowing in many countries. Mortgages, car loans and credit card bills can all get pricier. For savers, returns may improve.