The Federal Reserve will still hold eight scheduled meetings in 2027, but one will become a strategy session with no rate vote and no policy statement, the first cut to scheduled rate-setting meetings since the eight-meeting schedule began in 1981. Chair Kevin Warsh announced the change on October 28, 2026, the same day the Fed held its target range at 3.75% to 4% in a 10-2 vote, with two dissenters favoring a 25-basis-point hike. Warsh did not say which 2027 meeting will lose its vote, and the article notes that fewer votes mean more data between decisions, so each remaining vote could deliver a bigger surprise. Long bonds fell the most after the news: TLT dropped 0.78% to $80.99, while SPY closed at $772.31 and slipped to $768.87 after hours. Prediction markets put the chance of a December hike at 79%, and the Fed releases new projections on December 9.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
FedKevin Warshinterest ratesbonds
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/28/2026 | 102.14 |
| Change that session | -0.22% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Stock Market Today, Oct. 28: Markets Edge Higher as Fed Holds Rates Steady
The S&P 500 rose 0.28% to 7,744, the Nasdaq Composite gained 0.27% to 26,550 and the Dow Jones Industrial Average added 0.19% to 52,475 after the Federal Reserve held rates steady. Gold rose 0.10% to $4,068.14, while the 10-year Treasury yield climbed 0.02% to 5.02%, crossing the 5% threshold. Vertiv Holdings jumped nearly 17% on bullish long-term AI infrastructure demand forecasts, Oracle surged 11% after an investor day with new financial targets, and F5 plunged over 20% on its guidance and an analyst downgrade. Chair Kevin Warsh stressed the committee's commitment to reducing inflation, and officials said further data would inform rate decisions at the December meeting. After the bell, Microsoft beat expectations, particularly for its Azure cloud unit, while Alphabet shares slid after its revenue and sales fell short of analyst predictions.
- Treasury yields tick higher ahead of Federal Reserve interest rate decision
Bond yields edged higher early Wednesday as investors awaited the Federal Reserve's policy decision, due later in the session. The 10-year Treasury yield, the main benchmark for mortgages, auto loans and credit card debt, rose more than 2 basis points to 5.0134%, while the 2-year yield, which tracks short-term Fed moves, rose 1 basis point to 4.7494%. The 30-year yield climbed more than 1 basis point to 5.3200%. CME FedWatch data showed a 90.6% probability that the FOMC will keep rates unchanged at 375-400 basis points, while expectations for a 25 basis point hike at the Dec. 9 meeting stood at 76.5%. Investors will watch Fed Chair Kevin Warsh's statement for signals on future policy, and Thursday's PCE inflation, GDP and personal income data for more insight into the economy.
- AI debt trouble could help Fed's Warsh get his way with fewer rate hikes
AI financing has become harder and more expensive to obtain as the capital-spending boom faces greater scrutiny. This could help Fed's Warsh achieve his goal with fewer rate hikes.
- Could the Fed surprise with its rate decision this week?
The Fed is expected to hold its policy rate at 3.75-4% at its 27-28/10 meeting, even though September CPI and PPI both rose more than forecast and inflation has made little progress back toward the 2% target. Chair Kevin Warsh gave no signal on 16/10 that would change market expectations, cutting the odds of an October hike to about 15%. Robert Kaplan of Goldman Sachs said doing nothing is the option with the fewest hurdles, while Claudia Sahm argued the Fed has enough reason to act this week. The 10-year Treasury yield, which topped 5.3%, the highest in 24 years, fell 0.19 percentage points to 4.95% on 22/10 as tech stocks were sold off. Fed officials remain divided, with Logan, Hammack and Kashkari having opposed the July decision to hold rates.
- Breitbart Business Digest : The Bond Market Is Already Doing Warsh Work
The author agrees with Greg Ip of the Wall Street Journal that AI investment is vulnerable to tighter financial conditions, but notes that such tightening can come from capital markets rather than only from the Fed. At his September 16 press conference, Fed Chairman Kevin Warsh attributed rising long-term Treasury yields to stronger growth and competition for capital from hyperscalers building AI infrastructure. Fed officials including Lisa Cook and Philip Jefferson have argued that the natural rate of interest may be rising because of AI-driven investment and faster productivity growth. The article suggests that if long-term yields are already rising, the Fed may not need to raise its overnight rate as much, while higher yields are already making mortgages more expensive.
- Fed Minutes Show Another Rate Hike Is Likely This Year as Kevin Warsh FOMC Battles Persistent Inflation . Here Why That Signal Matters for Stocks and Bonds Heading Into Year - End .
Minutes released on October 7 show that Kevin Warsh and other FOMC members expect another rate hike in 2026 to fight persistent inflation, with meetings on October 28 and December 9 as key decision points. The September CPI rose 3.7% year over year, and after its September hike, the Fed may lift rates by another 0.25% or 0.5% by year-end. Higher rates typically weigh on stocks through higher borrowing costs, but Vanguard research suggests rates may need to rise at least 1 percentage point before stock markets suffer significant negative effects. The article recalls that in 2022, when the Fed hiked aggressively, the S&P 500 fell about 19% and the Nasdaq-100 fell about 33%. Since bond prices fall when yields rise, bonds may look more attractive than they have in recent years.
Related markets
Latest news
- 2 of our banks are at the heart of this week's biggest tech deals
The S&P 500 attempted a modest rebound but gave back part of its afternoon gains, with oil prices down roughly 8% on hopes for Middle East peace talks and the 10-year Treasury yield down about 4 basis points. The author cautions against reading too much into any single headline, given the possibility of escalation after the midterm elections. Goldman Sachs and Wells Fargo are involved in several large deals: Goldman is advising Marvell Technology on its all-stock acquisition of Lumentum, valued at $115 billion including debt and expected to close in the first half of calendar 2028 pending approvals including from China. Both banks are among those coordinating Oracle's $10 billion common stock offering and working on Microsoft's $25 billion debt sale, and Goldman is one of the lead banks on Meta Platforms' stock sale. The author says this deal activity supports the banks' results, while lower oil prices and yields have helped holdings including Boeing, Home Depot and FedEx, even as semiconductor names like Micron and Intel remained under pressure.
- Verizon's CEO Has a Warning for SpaceX and Its Mobile Plans
Telecom stocks have been under pressure this year as investors worry that SpaceX plans to turn its Starlink business into a major mobile carrier. Verizon CEO Dan Schulman said on the earnings call that SpaceX would need to build a significant terrestrial network, which would take several years and cost hundreds of billions of dollars, and that Verizon will compete aggressively if Starlink pursues mobile market share. Verizon reported strong third-quarter results, with postpaid phone net additions at their best in five years and quarterly net account growth at its highest in more than a decade. The author argues the market is overreacting to the SpaceX risk, citing a valuation of about eight times estimated future profits and a dividend yield of 6.3%.
- Why Cloudflare Stock Took a Dive on Monday
Cloudflare shares fell as much as 6% at the start of the week after Jefferies analyst Joe Gallo kept a hold rating but cut his price target to $320 from $350, still implying 14% potential upside from Friday's close. Gallo expects higher demand for the company's cloud services this quarter but thinks the bar may be set too high. Analyst consensus calls for revenue of $739 million, up 32%, and adjusted EPS of $0.34, up 26%, above management's revenue forecast of $736 million to $737 million. Cloudflare has beaten consensus estimates in each of the past four quarters and will report results after the close on Thursday. The article also cites Cloudflare's protective measures against a widely publicized PHP vulnerability, used by roughly 70% of websites, as an example of the importance of its cloud and security services.
- Qualcomm (QCOM) Joins $700 Million Hark Funding Round In AI Assistant Bet
Qualcomm joined Nvidia and AMD in a US$700 million Series A funding round for AI startup Hark, which is valued at US$6 billion. Hark is developing foundation models, software and AI-focused hardware for a next-generation personal assistant platform, and Qualcomm Ventures' participation links the chip designer to efforts to bring AI systems to consumer devices over time. The article ties the investment to Qualcomm's target of reaching US$40 billion in non-handset QCT revenue by fiscal 2029, and notes the company reaffirmed a US$0.92 quarterly dividend. It also highlights the broader effort to reduce reliance on smartphones, and points to commentary on Hark and AI assistant workloads in the December 2026 quarter earnings as an early indicator to watch.
- AMD to report Q3 results following disappointing showing from Intel
AMD will report third-quarter results after the bell on Tuesday, as Wall Street looks for signs of AI chip demand after a sharp AI-trade sell-off and a disappointing Q4 outlook from Intel (INTC) last week. Intel guided Q4 revenue to $15 billion to $16 billion, well below the $17 billion analysts expected, sending its stock down nearly 29%; the company blamed a steeper-than-expected decline in the PC market. Analysts expect AMD to earn $1.97 per share on $13 billion in revenue, versus $1.20 and $9.2 billion a year earlier. Data Center sales are forecast at $8.19 billion, up 88% from $4.34 billion, while the gaming business could fall 49% to $655 million as higher memory and storage prices weigh on demand. Client revenue, which includes PC sales, is projected at more than $3.06 billion, up 11% year over year but flat sequentially.
- Why Musk's telecom play is no 'Hail Mary' fix
Two speakers discuss Elon Musk's push into telecoms over the past few months. One says the move may lift the stock briefly but is not a Hail Mary that will turn the business around, since telecom is heavily scrutinized for antitrust and not very lucrative; this speaker also doubts Musk's statements that funding is secured and wants to know what he is worried about in ongoing investigations. The other speaker views SpaceX's entry into telecoms positively, as a sign of diversification beyond AI and space, while the first asks when that could become an issue.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.