Federal Reserve Chair Kevin Warsh secured a unanimous 12-0 vote for a quarter-point rate increase 127 days into his tenure, bringing the federal funds target range to 3.75% to 4%. The increase, the first since July 2023, came as Warsh pursued a broader regime-change agenda and faced questions about whether he would act independently of President Donald Trump. Inflation measured by the personal consumption expenditures index was 3.7% in July, above the Fed's 2% target, while markets priced further tightening. Warsh shortened post-meeting press conferences, rearranged reporters' seating, withheld his rate projections from the dot plot and rejected the neutral interest rate as guidance for policy decisions. His plan to reduce the Fed's $6.7 trillion balance sheet remained stalled as policymakers awaited a task-force review and the 10-year Treasury yield moved above 5%.