The Federal Reserve’s latest wording on interest rates has sent a clear signal that a hike is likely in December. The new language used in the statement, which emphasizes the importance of accumulating more data before making a decision, seems to confirm the view of Fed Chair Warsh that he bases his decisions on trends rather than single data points.

During the press conference, Warsh struck a hawkish tone, highlighting the stronger economic growth and elevated inflation as signs of a robust economy. He also noted that job gains have kept pace with the workforce, leaving the unemployment rate little changed, and investment is likely rising at a double-digit pace.

The Fed’s decision to change its meeting setup is also seen as a sign of a more hawkish stance. While the Fed will continue to hold 8 meetings a year, starting in 2027, one of those meetings will be dedicated to reflection and will not have a policy vote. This could increase to two of the eight meetings in 2028.

Overall, the Fed’s new wording and Warsh’s hawkish tone suggest that the central bank is ready to take action to keep inflation in check and maintain a strong economy. With the December meeting just around the corner, investors may want to keep a close eye on the Fed’s next move.