{"id":636313,"date":"2026-10-04T18:10:10","date_gmt":"2026-10-04T18:10:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/636313\/"},"modified":"2026-10-04T18:10:10","modified_gmt":"2026-10-04T18:10:10","slug":"fed-chair-kevin-warsh-just-used-5-words-to-describe-the-feds-first-rate-hike-since-2023-saying-the-fed-removed-a-dose-of-accommodation-should-investors-brace-for-more-hikes-this-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/636313\/","title":{"rendered":"Fed Chair Kevin Warsh Just Used 5 Words to Describe the Fed’s First Rate Hike Since 2023, Saying The Fed “Removed A Dose of Accommodation.” Should Investors Brace for More Hikes This Year?"},"content":{"rendered":"

When it comes to factors affecting the S&P 500 (^GSPC<\/a> +0.73%), Nasdaq Composite (^IXIC<\/a> +1.19%), and Dow Jones Industrial Average (^DJI<\/a> +0.49%), interest rates are among the most closely watched for a reason.<\/p>\n

For example, after the Federal Reserve voted in mid-September to raise interest rates a quarter point, the agency’s new chair, Kevin Warsh, said that the Fed had “removed a dose of accommodation.” In that context, the dose of accommodation means a dose of economic stimulus. Given the phrasing, it’s reasonable to assume that Warsh interprets current monetary conditions as still fairly loose and that more work is needed to control inflation.<\/p>\n

Does his phrasing suggest the Federal Reserve is going to approve more rate hikes this year?<\/p>\n

\"Federal<\/p>\n

Federal Reserve chair Kevin Warsh. Image source: The White House.<\/p>\n

16 of 18 Fed officials expect another hike in 2026<\/p>\n

Assuming all else remains largely unchanged in 2026, investors should brace themselves for at least one more rate hike this year.<\/p>\n

As of Oct. 1, CME’s FedWatch prediction data suggests that the odds of the Federal Reserve hiking rates at its October meeting are about 33%. In the Fed’s September 2026 economic projections, 16 of 18 Fed officials who submitted projections expected at least one more rate hike this year.<\/p>\n

Today’s Change<\/p>\n

(0.73%) +56.27<\/p>\n

Index Level<\/p>\n

7,722.72<\/p>\n

Key Data Points<\/p>\n

Day’s Range<\/p>\n

7,700.51 – 7,754.67<\/p>\n

52wk Range<\/p>\n

6,316.91 – 7,816.70<\/p>\n

The inflation data also indicates that further hikes are highly probable.<\/p>\n

In his remarks at the September Fed meeting, Warsh estimated that the Fed’s preferred measurement of inflation, the personal consumption expenditures (PCE) price index, rose about 3.6% in the year through August, far higher than the long-term target of 2%. Data from the Bureau of Labor Statistics (BLS) additionally shows that energy prices jumped 16.3% over the 12-month period ending in August.<\/p>\n

Moreover, the factors driving this inflation are getting worse, not better.<\/p>\n

Index<\/p>\n

NASDAQ Composite Index<\/p>\n

Today’s Change<\/p>\n

(1.19%) +319.27<\/p>\n

Index Level<\/p>\n

27,190.86<\/p>\n

Key Data Points<\/p>\n

Day’s Range<\/p>\n

27,112.24 – 27,353.68<\/p>\n

52wk Range<\/p>\n

20,794.64 – 27,353.68<\/p>\n

Brent crude, the global crude oil benchmark, hit $101.15 per barrel on Oct. 1 as a result of the U.S.-Israel war on Iran. And that most recent spike in oil prices isn’t even reflected in the inflation data yet.<\/p>\n

Don’t panic, but be prepared<\/p>\n

Incoming rate hikes are no reason to sell your stocks, bonds, or cryptocurrencies<\/a> in a rush. The current market conditions suggest traders already expect at least a couple of additional rate hikes.<\/p>\n

Index<\/p>\n

Dow Jones Industrial Average<\/p>\n

Today’s Change<\/p>\n

(0.49%) +250.40<\/p>\n

Index Level<\/p>\n

51,176.96<\/p>\n

Key Data Points<\/p>\n

Day’s Range<\/p>\n

50,950.61 – 51,382.88<\/p>\n

52wk Range<\/p>\n

45,057.28 – 54,744.33<\/p>\n

In mid-September 2026, futures pricing implied that the Fed’s benchmark rate would be at 4.6% by late 2027, which means three or four more hikes. But a quickly rising price of oil could make even that a bit optimistic. There remains a significant risk of the market going for a tumble if the Fed hikes faster than the market is anticipating.<\/p>\n

Keep a close watch on the war, as it’s the most important driver of near-term rate increases. Interest rate hikes won’t help to make energy any cheaper, but if inflation continues to run hot, the Fed may not have any choice. It’s probably a good idea to own some inflation-resistant assets<\/a> as this process works itself out, just to be safe.<\/p>\n","protected":false},"excerpt":{"rendered":"When it comes to factors affecting the S&P 500 (^GSPC +0.73%), Nasdaq Composite (^IXIC +1.19%), and Dow Jones…\n","protected":false},"author":2,"featured_media":636314,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-636313","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/636313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=636313"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/636313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/636314"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=636313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=636313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=636313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}