Federal Reserve officials are signaling that at least one more interest-rate increase may be needed before 2027, even as Chair Kevin Warsh seeks to end the central bank’s practice of forward guidance, or signaling future policy decisions. The Federal Open Market Committee (FOMC), which sets interest rates, unanimously raised its baseline federal funds target range by 25 basis points this month to 3.75% to 4%. New York Fed President John Williams, Philadelphia Fed President Anna Paulson and Fed Governor Michael Barr have all said further tightening could be appropriate if inflation does not return to the Fed’s 2% target in a timely manner. They also stressed that incoming economic data will guide the next decision. New inflation data subsequently reduced market expectations for another increase: August personal consumption expenditures (PCE) inflation fell to 3.4% annually from 3.7% in July, while core PCE inflation was 3%. Traders assigned a nearly 63% probability to rates remaining unchanged next month, reversing an earlier estimate of roughly 70% for another quarter-point hike. Analysts differ on whether officials’ comments represent resistance to Warsh or simply reflect the FOMC’s latest discussions. The next meeting will occur less than a week before the midterm elections, while President Trump is urging the committee to cut rates. The Fed last raised rates ahead of an election in early November 2022, when it approved a 75-basis-point increase after inflation reached a 40-year high.