{"id":251207,"date":"2026-09-17T10:09:36","date_gmt":"2026-09-17T04:39:36","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=251207"},"modified":"2026-09-17T10:09:36","modified_gmt":"2026-09-17T04:39:36","slug":"us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/","title":{"rendered":"US Fed Rate Hike: FOMC Raises Rates 25 bps in First Move Under Kevin Warsh"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>US Fed rate hike: FOMC unanimously (12-0) raised the federal funds rate target range to 3.75-4% from 3.5-3.75% on Wednesday, the first hike since July 2023, under new Fed Chair Kevin Warsh.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">The US Fed rate hike delivered on Wednesday marked the central bank&#8217;s first increase in interest rates in more than three years, with the Federal Open Market Committee unanimously voting 12-0 to raise the federal funds rate target range to 3.75-4 percent from 3.5-3.75 percent. The move, the first major monetary policy shift under new Fed Chair Kevin Warsh, who took office in May, came as stubborn inflation, surging energy prices and resilient US economic growth pushed policymakers to act. The Fed also signalled that borrowing costs could rise further in the coming months, suggesting this US Fed rate hike may not be a one-off.<\/p>\n<\/p><\/div>\n<p>The US Fed rate hike arrived on Wednesday, with the Federal Reserve raising interest rates for the first time in more than three years as policymakers stepped up their fight against stubborn inflation and signalled that borrowing costs could climb further in the months ahead.<\/p>\n<p>The Federal Open Market Committee voted unanimously, 12-0, to raise the federal funds rate target range to 3.75-4 percent from 3.5-3.75 percent, marking the first major monetary policy shift under Fed Chair Kevin Warsh, who took office in May.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Why_the_Fed_Delivered_This_Rate_Hike_Now\" title=\"Why the Fed Delivered This Rate Hike Now\">Why the Fed Delivered This Rate Hike Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#What_the_Unanimous_Vote_and_Kevin_Warshs_Role_Signal\" title=\"What the Unanimous Vote and Kevin Warsh&#8217;s Role Signal\">What the Unanimous Vote and Kevin Warsh&#8217;s Role Signal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#What_Comes_Next_After_This_Rate_Hike\" title=\"What Comes Next After This Rate Hike\">What Comes Next After This Rate Hike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#How_much_did_the_Fed_raise_rates_by_in_this_US_Fed_rate_hike\" title=\"How much did the Fed raise rates by in this US Fed rate hike?\">How much did the Fed raise rates by in this US Fed rate hike?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#When_was_the_Feds_last_rate_hike_before_this_one\" title=\"When was the Fed&#8217;s last rate hike before this one?\">When was the Fed&#8217;s last rate hike before this one?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Was_the_FOMCs_vote_on_this_rate_hike_unanimous\" title=\"Was the FOMC&#8217;s vote on this rate hike unanimous?\">Was the FOMC&#8217;s vote on this rate hike unanimous?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Who_is_the_Fed_Chair_behind_this_rate_hike_decision\" title=\"Who is the Fed Chair behind this rate hike decision?\">Who is the Fed Chair behind this rate hike decision?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Why_did_the_Fed_decide_to_raise_rates_now\" title=\"Why did the Fed decide to raise rates now?\">Why did the Fed decide to raise rates now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#Does_the_Fed_expect_to_raise_rates_further\" title=\"Does the Fed expect to raise rates further?\">Does the Fed expect to raise rates further?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/us-fed-rate-hike-25-bps-kevin-warsh-first-since-2023\/#How_could_this_US_Fed_rate_hike_affect_India\" title=\"How could this US Fed rate hike affect India?\">How could this US Fed rate hike affect India?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_Fed_Delivered_This_Rate_Hike_Now\"><\/span><strong>Why the Fed Delivered This Rate Hike Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Three factors combined to push the Fed toward this rate hike: stubborn inflation that has proven more persistent than policymakers had hoped, surging energy prices adding to cost pressures across the economy, and a US economy that has continued to grow at a resilient pace despite years of elevated rates.<\/p>\n<p>That combination, persistent price pressure alongside continued growth, gave the Fed room to act on inflation without an immediate, overriding concern about tipping the economy into recession, a balance that had kept the central bank on hold for the better part of three years.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Track Global Cues and Rate-Sensitive Stocks on Univest<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_the_Unanimous_Vote_and_Kevin_Warshs_Role_Signal\"><\/span><strong>What the Unanimous Vote and Kevin Warsh&#8217;s Role Signal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The 12-0 unanimous vote is notable in itself, suggesting broad consensus within the FOMC on the need to act, rather than the kind of split decision that sometimes accompanies major policy shifts. For Kevin Warsh, this rate hike is his first major monetary policy action since taking over as Fed Chair in May, setting an early tone for his tenure as inflation-focused rather than growth-accommodative.<\/p>\n<p>Markets will likely scrutinise Warsh&#8217;s subsequent public commentary closely for further signals on the pace and scale of any additional US Fed rate hike moves, given that this is the first substantive data point on his policy approach since taking office.<\/p>\n<p style=\"font-style:italic;color:#000000;margin:14px 0;\">Also read &#8211; <a href=\"https:\/\/univest.in\/blogs\/steel-sector-stocks-to-buy-tata-steel-jsw-steel-jindal-steel-nomura\">Steel Stocks Rally as Nomura Backs Tata Steel, JSW Steel and Jindal Steel Buy Calls Amid 4-Year High Prices<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Comes_Next_After_This_Rate_Hike\"><\/span><strong>What Comes Next After This Rate Hike<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Fed&#8217;s own signal that borrowing costs could rise further in the coming months suggests this move is likely the start of a renewed tightening phase rather than an isolated, one-time adjustment, a stance that has implications well beyond US markets given the dollar&#8217;s central role in global finance.<\/p>\n<p>For markets outside the US, including India, a US Fed rate hike of this kind typically influences capital flows, currency movements and the policy calculus of other central banks, several of which, including the RBI, are already weighing their own rate decisions partly in response to what the Fed does next.<\/p>\n<p style=\"font-style:italic;color:#000000;margin:14px 0;\">Also read &#8211; <a href=\"https:\/\/univest.in\/blogs\/rbi-rate-hike-nomura-50-bps-q4-inflation\">RBI Rate Hike Alert: Nomura Sees 50 bps Increase in Q4 as Inflation Pressure Builds<\/a><\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"https:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track global rate decisions and market reactions live.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This US Fed rate hike, the first in more than three years and the first major decision under Kevin Warsh, reflects a central bank prioritising persistent inflation risk even as growth has stayed resilient, with more increases signalled ahead. Investors globally, including in India, should watch for the Fed&#8217;s subsequent commentary and how other central banks respond, and should consult a SEBI-registered investment adviser before repositioning portfolios around these developments.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"How_much_did_the_Fed_raise_rates_by_in_this_US_Fed_rate_hike\"><\/span><strong>How much did the Fed raise rates by in this US Fed rate hike?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The Federal Open Market Committee raised the federal funds rate target range by 25 basis points, to 3.75-4 percent from 3.5-3.75 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_was_the_Feds_last_rate_hike_before_this_one\"><\/span><strong>When was the Fed&#8217;s last rate hike before this one?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> This was the Fed&#8217;s first rate hike since July 2023, marking a gap of more than three years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Was_the_FOMCs_vote_on_this_rate_hike_unanimous\"><\/span><strong>Was the FOMC&#8217;s vote on this rate hike unanimous?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. The Federal Open Market Committee voted 12-0 in favour of the rate hike.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_is_the_Fed_Chair_behind_this_rate_hike_decision\"><\/span><strong>Who is the Fed Chair behind this rate hike decision?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Kevin Warsh, who took office as Fed Chair in May, oversaw this decision, marking his first major monetary policy action.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_Fed_decide_to_raise_rates_now\"><\/span><strong>Why did the Fed decide to raise rates now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Stubborn inflation, surging energy prices, and resilient US economic growth combined to push the Fed toward this rate hike.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_the_Fed_expect_to_raise_rates_further\"><\/span><strong>Does the Fed expect to raise rates further?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. The Fed signalled that borrowing costs could rise further in the coming months, suggesting this hike may not be a one-off move.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_could_this_US_Fed_rate_hike_affect_India\"><\/span><strong>How could this US Fed rate hike affect India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> It typically influences global capital flows, currency movements including the rupee, and the policy calculus of other central banks such as the RBI, which is separately weighing its own rate decisions.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"How much did the Fed raise rates by in this US Fed rate hike?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Federal Open Market Committee raised the federal funds rate target range by 25 basis points, to 3.75-4 percent from 3.5-3.75 percent.\"}},{\"@type\":\"Question\",\"name\":\"When was the Fed's last rate hike before this one?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"This was the Fed's first rate hike since July 2023, marking a gap of more than three years.\"}},{\"@type\":\"Question\",\"name\":\"Was the FOMC's vote on this rate hike unanimous?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. 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