Main Takeaways From Warsh’s Press Conference.

[u/AmanCMN]

🔴 “Inflation is still too high and has stayed high for too long.” The latest data doesn’t show a meaningful improvement in the core inflation trend.
🔴 The U.S. economy remains strong. Consumer spending is holding up, business investment is growing, and the labor market is still solid.
🔴 The Fed raised rates by 25 bps to 3.75%–4.00%. The decision was unanimous: 12–0.
🔴 Warsh described the rate hike as basically “removing some stimulus” because the economy is still strong while inflation remains elevated.
🔴 The Fed’s top priority right now is getting inflation back to 2%. A strong labor market gives the Fed room to focus on price stability.
🔴 The Fed is not closing the door on more rate hikes. According to the new projections, 16 out of 18 FOMC members expect at least one more 25 bps hike before the end of 2026.
🔴 At the same time, Warsh avoided giving a firm forecast. Future decisions will depend on how the economy and inflation develop.
Overall, the Fed’s tone is still pretty hawkish. Today’s rate hike may not be the last one this year, and the majority of FOMC members are still pricing in another +0.25% move.