What smart people in business and economics are saying about the Fed interest rate hike

The Fed raised rates by a quarter point, its first hike in three years.

Fed Chair Kevin Warsh said the move would not immediately lower individual prices.

Here is what economists and analysts say could come next.

Markets and analysts are abuzz over the first Fed interest-rate hike since the second Trump administration.

On Wednesday, the Federal Reserve raised rates by a quarter point, its first hike in three years, as officials sought to curb inflation. Kevin Warsh , the Federal Reserve Chair, said that the move would not immediately bring down individual prices, meaning Americans could still feel pressure at grocery stores and gas pumps .

Warsh declined to say whether more hikes were coming and rejected the idea of forward guidance. Instead, he said future decisions would depend on incoming economic data, and said outside pressures do not drive decisions by the Federal Open Market Committee.

Here's what smart people in economics and finance are saying about the Fed's latest rate hike , and where interest rates could go next.

Justin Wolfers, professor of public policy and economics at the University of Michigan

Justin Wolfers, a professor of public policy and economics at the University of Michigan, wrote in a post on X that markets would be glad that the rate hike decision means Warsh is "more of a Serious Kevin than a Sockpuppet Kevin."

"Silent Kevin remains largely silent. It's up to you to guess the what, the where, the why, and the next," Wolfers said on Wednesday. "Remember, he's Silent Kevin because he wants markets to focus on the economy rather than the Fed."

Bill Banfield, chief business officer at Rocket Mortgage

Bill Banfield, the chief business officer at Rocket Mortgage, said in commentary that the foundation for the housing market remains "solid," though elevated rates squeeze affordability .

"For anyone house hunting right now, it's a buyers' market in many metros, with inventory at a six-year high and plenty of room to negotiate," Banfield said.

"That changes the dynamic for buyers, especially those who remember the ultra-competitive market in recent years," Banfield added.

Heather Long, chief economist for the Navy Federal Credit Union

Heather Long, chief economist for the Navy Federal Credit Union, said in a post on X on Wednesday that the "big news" is that the Fed is signaling a "mid-cycle adjustment" of "2 or 3 rate hikes."

"He doesn't like to give forward guidance, but he's telegraphing it's probably going to take more than 1 hike," Long said of Warsh. "They are trying to act early and decisively to ensure they don't have to hike much to get inflation under control."