In this report, Farid Novin examines the decision made in September 2026 by the Federal Open Market Committee (FOMC) to raise the federal funds rate by 25 basis points.



The analysis highlights the unanimous nature of the vote, reflecting a significant shift in the internal consensus toward combating persistent inflation, despite earlier divisions within the Committee. Central to the discussion is the role of Chair Kevin Warsh, whose approach prioritizes responding to underlying economic trends rather than to isolated data points. Novin’s report seeks to determine whether this tightening will succeed in anchoring inflation expectations or merely suppress demand in the face of global supply shocks, such as energy supply disruptions in the Middle East.



In conclusion, the author suggests that the long-term effectiveness of this measure remains uncertain and will depend on future labor market stability and the evolution of the geopolitical landscape.

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[https://fn-post.blogspot.com/2026/09/the-september-16-fomc-decision.html](https://fn-post.blogspot.com/2026/09/the-september-16-fomc-decision.html)

Global Review - Ep. 206 - Analyzing the 2026 FOMC Decision: Bayesian Cre...