Fed Officials Signal Possible Rate Hike in 2026, Warsh Skips Forecast

The Fed's quarterly updated projections — the so-called dot plot — showed that most FOMC members see the possibility of raising the key rate to 3.8% by the end of 2026. This would imply at least one additional upward step from the current level. Particular attention was drawn to Chair Warsh's reported decision not to include his own forecast in the collective dot plot, an unusual move for a central bank chief. Analysts interpret this as Warsh's desire to maintain maximum flexibility in decision-making without tying himself to public benchmarks. For investors, this increases uncertainty: markets will be forced to scrutinize every word from the new chairman more closely to gauge the direction of policy.