![\"Kevin](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/10\/1791803902_596_.jpeg\"\/)
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This won’t be a one-and-done rate-hiking cycle. Image source: Official Federal Reserve Photo.<\/p>\n
But sustaining this AI-driven bull market could be easier said than done. Last week, Fed Chair Warsh and his Federal Open Market Committee (FOMC)<\/a> colleagues fired an unmistakable warning shot at the second-priciest stock market in history. The only question is: How many investors are paying attention?<\/p>\n The Federal Reserve’s rate-hiking cycle is ramping up<\/p>\n On Sept. 16, Warsh and 11 other voting members of the FOMC unanimously raised the federal funds target rate by 25 basis points to 3.75%-4.00%. It’s just the fourth time this century that the central bank has kicked off a rate-hiking cycle<\/a>.<\/p>\n Warsh and the FOMC have been compelled to act because of persistently elevated inflation. August marked the 66th consecutive month in which the annualized inflation rate<\/a> topped the FOMC’s long-term 2% target.<\/p>\n \ud83c\uddfa\ud83c\uddf8 FED CHAIRMAN KEVIN WARSH SAID:<\/p>\n “The plain fact is that inflation is too high and has been for too long,” https:\/\/t.co\/htRQqyQHtr<\/p>\n \u2014 Evan (@StockMKTNewz) September 16, 2026<\/a><\/p>\n While rising prices are perfectly normal in an expanding economy, inflation has soared in 2026 due to Trumpflation<\/a> (inflation that’s specifically driven by President Trump’s policies). Donald Trump’s tariffs are increasing domestic manufacturing costs, while the Iran war has led to the ongoing closure of the Strait of Hormuz. The largest energy supply disruption in modern history has sent fuel prices soaring.<\/p>\n The newly released Federal Reserve meeting minutes (effectively a summary of what policymakers discussed behind closed doors on Sept. 15-16) point to tariffs, the Iran war, and the AI infrastructure build-out as key sources of inflation.<\/p>\n More importantly, the Fed meeting minutes charted a path forward for interest rates. Contained in the Fed minutes was this statement:<\/p>\n With regard to the outlook for monetary policy beyond this current meeting, most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end.<\/p>\n While this statement doesn’t tell us whether the FOMC would raise interest rates<\/a> at the October or December meeting, it makes it crystal clear that additional rate hikes are expected in the not-too-distant future. That’s terrible news for a historically expensive stock market.<\/p>\n Stock Market Shiller PE Ratio on the verge of taking out its Dot Com Bubble all-time high \ud83d\udea8 \ud83e\udd2f \ud83d\udc40 https:\/\/t.co\/CtCmSgWnLt<\/p>\n \u2014 Barchart (@Barchart) July 11, 2026<\/a><\/p>\n