Fed Delivers First Rate Hike Since 2023, Signals More to Come as Inflation Proves Stubborn

• Fed Funds Rate: 3.75%–4.00%, up 25 bps
• Inflation: "Too high and has been for too long" — Warsh
• Retail Sales: Surged past expectations in August
• 10-Year Treasury Yield: Nearing 5%

The Checkup

The Federal Reserve delivered its first rate increase since July 2023 on Wednesday, raising the benchmark by 25 basis points in a unanimous 12-0 vote. But the real headline was the dot plot: policymakers now project one more hike this year, pushing the terminal rate...