Fed hikes rates as Warsh signals inflation still 'too high', stoking volatility

The Federal Reserve, under Chair Kevin Warsh, raised interest rates for the first time in years on a unanimous vote, signaling no rush to ease despite recent economic data. Warsh's comments that inflation remains "too high" triggered immediate market selloffs across equities and bonds.

The 10-year Treasury yield surged above 5% following the hike, and stocks swung sharply as investors repriced rate-path expectations. Markets later recovered as safe-haven moves eased, reflecting persistent uncertainty about monetary policy duration. #markets #economy