More hikes will come.

Many were unconvinced a hike was necessary, and expected Warsh to draw the sting by hinting this would be “one and done,” not the start of a hiking cycle.

He didn’t do that. By the close, markets were convinced that more hikes would come, and that Warsh was happy about it. 

Warsh framed the hike as part of a “discipline” and “the removal of some accommodation” — implying more to come. 

Warsh and the FOMC all presented the economy as stronger than they had thought — classic conditions for more tightening.

In the longer term, this moment could yet seem more significant. It’s a big step away from 

the “new normal” 

https://www.bloomberg.com/news/articles/2018-07-30/el-erian-says-the-u-s-alone-has-exited-the-new-normal

conditions that followed the Global Financial Crisis, 

and implies the destination is not the pre-crisis “old normal” driven by globalization and favorable demographics. 

Bitcoin funds have attracted a cumulative $55 billion since the launch over two years ago, down from a high of $63 billion.

Some podcasts for your listening pleasure. I started the day discussing bond yields with Stephanie Flanders on Trumponomics, and ended it talking about the Fed with David Gura and Maria Eloisa Capurro on The Big Take.

John Authers Bloomberg 17 September 2026

https://www.bloomberg.com/opinion/newsletters/2026-09-17/warsh-s-fed-soars-like-a-hawk-into-a-hiking-cycle

Asked whether he thinks monetary policy is weighing on economic activity following the hike, Warsh said that he “found it difficult to describe financial conditions as restrictive” and that most of his colleagues at the Fed agree.

Warsh said that raising rates by 0.25 percentage point had only “removed a dose of accommodation,” suggesting that officials might want to see more restrictive financial conditions, i.e. a less frothy stock market and higher bond yields.

https://englundmacro.blogspot.com/2026/09/16-september-fed-hojer-da-stiger-borsen.html

Krugman: Are High Interest Rates the New Normal?

https://englundmacro.blogspot.com/2023/10/krugman-are-high-interest-rates-new.html

Yields on 30-year US bonds broke 5% last week, a level not seen since before the Great Financial Crisis. 

Bond doomers (I am one) have been waiting for this moment for about 15 years. But we are not yet vindicated. Yields may fall again.

This is not a new normal — it is just normal, period. On of the first things I learned about long-term bonds is that, unlike stocks, they revert to the mean. 

Allison Schrager Bloomberg August 24, 2026 

https://englundmacro.blogspot.com/2026/08/bond-yields-tend-to-oscillate-around.html