The Federal Reserve is expected to raise interest rates today, but investors are focused on the guidance Fed Chairman Kevin Warsh will provide afterward. Major banks broadly expect Warsh to preserve a cautious, hawkish stance on inflation without committing clearly to additional increases. Barclays expects him to highlight strong growth, a near-full labor market and persistently high inflation. BMO sees any limited tightening as a risk-management step intended to reduce the need for larger increases later, while Bank of America warns that communication will be difficult: signaling consecutive hikes could lead markets to price in more than 100 basis points of additional tightening, whereas a dovish hike could undermine confidence in the Fed’s 2% inflation target. Citi, JPMorgan and Nomura expect limited forward guidance, with policy remaining heavily dependent on incoming monthly inflation data. Deutsche Bank expects markets to seek clarity on whether the current cycle is reversing last year’s 75 basis points of risk-management cuts. Goldman Sachs also expects the Fed to wait for multiple monthly inflation readings before making another decision. Standard Chartered expects questions about whether tariffs’ inflationary effects will be temporary, while TD Securities says further tightening would remain under consideration if rates rise today. UBS believes a hike would give Warsh greater scope to sound hawkish afterward, even as it expects limited guidance.