The Federal Reserve has raised interest rates for the first time in three years, with Fed Chair Kevin Warsh delivering a unanimous 25 basis point hike as inflation once again becomes the dominant concern for financial markets.
In this episode, Anthony Cheung and Piers Curran break down why the Fed decided to hike, what Warsh means by “removing accommodation”, and why the decision could be an important test of the Fed’s independence amid political pressure from Donald Trump.
We also explain the reaction across bonds, equities and the US dollar, why short and long-term Treasury yields are moving differently, and what the Fed’s latest projections could mean for interest rates over the rest of 2026.
Whether you’re following markets as an investor or preparing for a global markets interview, this episode gives you a practical framework for understanding one of the most important macro stories shaping the global economy.
(00:00) Why This Fed Decision Matters
(01:13) Why the Fed Hiked
(06:49) Policy Accomodation
(09:13) What’s Driving Inflation?
(16:18) Is the Fed Independent?
(21:44) How Markets Reacted
(25:51) What Happens Next?
(29:56) Lessons From Past Rate Hikes
(32:50) Interview Cheat Sheet