Fed expected to hike 25bp to 3.75-4.00% under Warsh, first since 2023

The Federal Reserve is widely expected to raise interest rates by 25 basis points, its first hike since 2023, under new chair Kevin Warsh, despite pressure from President Trump. The move signals a hawkish pivot amid persistent inflation, marking a reversal from the prior easing cycle. Markets will focus on forward guidance for the pace of further tightening.