Kevin Warsh

Asian Stocks Rise Ahead of Expected Fed Hike

Asian shares edged higher after bouts of declines as investors prepared for the Federal Reserve’s anticipated 25-basis-point rate hike, with yields around 5% and commodities like Brent near $108 a barrel signaling caution ahead of the decision; Korean markets led gains while broader sentiment stayed cautious due to higher borrowing costs and ongoing inflation concerns. Market expectations point to a roughly 92% probability of a hike, and analysts warn that volatility may rise post-announcement as traders weigh policy forward guidance and its impact on equities and the dollar.

Trump Renews Push for Fed Rate Cut Amid Hike Pressure

Trump said Sept. 13, 2026, the U.S. should pay the world's lowest interest rate regardless of data, speaking in Ireland before the Fed meeting.

UBS reverses course, now expects two more Fed rate hikes in 2026

UBS now expects the Federal Reserve to lift rates by 25 basis points in September and December 2026, reversing earlier calls for no policy change this year and signaling tighter monetary policy ahead. The shift nudges investors toward rate‑resilient assets and sector tilts while cautioning on duration‑heavy holdings as markets reassess growth and inflation dynamics.

Warsh warns on inflation as traders debate what's driving rate surge

Stocks Rebound as Oil Eases After Fed Hike

US stock futures dipped as the 10-year Treasury yield rose above 5% ahead of the Federal Reserve decision, underscoring higher borrowing costs and persistent rate-inflation concerns. Oil climbed on Middle East tensions, while bond–equity ETFs showed reduced diversification benefits as rates stayed elevated and markets sold off.

Fed Raises Rates, Signals Possible Further Hike

Minutes from the July FOMC meeting are viewed as a key gauge of the committee's appetite for a rate hike, with markets pricing roughly a 30% chance and several dissents among current voters highlighted. The previews also flag potential clues on the Fed's reaction function, language in the minutes about participants, and a focus on reserve-management purchase policy as the Fed refrains from new purchases in the August-September window, signaling patience ahead of a likely September decision.

Fed Raises Rates, Signals Further 2026 Hike

RBI Governor Sanjay Malhotra met Finance Minister Nirmala Sitharaman amid rising inflation risks linked to crude oil prices, with SBI Ecowrap signaling a higher chance of rate hikes as oil crosses $100 a barrel. The meetings precede the RBI’s October 5–7, 2026 MPC policy review, following India’s 7.8% Q1 GDP growth and a kept repo rate of 5.25% in August.

Fed Raises Rates as India Faces Inflation Pressure

Global markets are bracing for potential Fed tightening with expectations of a 25 basis-point hike in September and possibly more through year-end, while oil sits above $100 and US yields rise, reinforcing a stronger dollar dynamic. Asian assets are weighing rate hike prospects as the Bank of Korea indicates a possible rate increase amid solid growth, with analysts warning that persistent inflation and higher discount rates could pressure equities and trigger volatility in currencies and flows.

Fed Raises Rates Amid Inflation Pressure

With August core inflation sticking higher than expected and markets pricing in a rate hike, Fed Chair Kevin Warsh faces intense pressure to raise rates at the upcoming meeting, testing his independence and credibility. The political backdrop includes President Trump urging looser policy, complicating the central bank’s balance between market credibility and electoral considerations.