The Fed Just Hiked Interest Rates. Are There More Hikes on the Way?

The Federal Reserve, under new Chair Kevin Warsh, raised interest rates by a quarter-point this week. Multiple indicators—including FOMC projections, futures markets showing 87% probability of another hike, and Treasury yields—suggest more rate hikes are coming in 2026 and 2027. Despite typically negative stock market performance during rate-hiking cycles, the S&P 500 rose 1.1% after the announcement as investors welcomed the Fed's commitment to fighting inflation.