The Fed raised interest rates and now expects inflation to stay above target until 2029, bad news for borrowers and anyone living paycheck to paycheck.

• The Fed voted unanimously to raise rates, the first hike in years, taking its benchmark rate to 4%.
• Its own forecast now shows inflation not returning to the 2% goal until 2029, two years later than before.
• The Fed also penciled in one more hike this year, with meetings left in October and December.
• Chair Warsh refused to give forward guidance, saying the Fed is committed to "a discipline, not a decision."
• The Fed is still buying bonds, which pumps money into the system and works against its own inflation fight.
• Warsh brushed off Trump's calls to cut rates and said the poorest Americans, who own no stocks or homes, gain the most from stable prices.
• Long-term bond yields are climbing because the economy is stronger and AI companies are borrowing heavily to build data centers.

Outlook: Expect another rate hike before year-end, higher borrowing costs for mortgages and loans, and a long, slow fight to bring inflation down.