Warsh Chooses Market Stability Over Trump's Demands
- —The FOMC unanimously raised rates by 25 bps to 3.75–4% on September 16, 2026
- —Inflation reached 4.2% in 2026, missing the 2% target for over five years
- —Trump demanded a rate of 1% or lower, which would require a cut of nearly 300 bps
- —Two-year Treasury yields rose after the Fed's decision
Why it matters: The unanimous decision signals Fed independence under Warsh, reducing the risk of political pressure on rates, but tightening weighs on crypto and risk assets.
Source: Crypto Briefing