The Fed hiked rates for the first time in years. Here's what smart people in economics say comes next.

What smart people are saying about the AI apocalypse and calls to slow everything down

What smart people in business and tech are saying about AI bans for schools

Markets and analysts are abuzz over the first Fed interest-rate hike since the second Trump administration.

On Wednesday, the Federal Reserve raised rates by a quarter point, its first hike in three years, as officials sought to curb inflation. Kevin Warsh, the Federal Reserve Chair, said that the move would not immediately bring down individual prices, meaning Americans could still feel pressure at grocery stores and gas pumps.

Warsh declined to say whether more hikes were coming and rejected the idea of forward guidance. Instead, he said future decisions would depend on incoming economic data, and said outside pressures do not drive decisions by the Federal Open Market Committee.

Here's what smart people in economics and finance are saying about the Fed's latest rate hike, and where interest rates could go next.

Justin Wolfers, professor of public policy and economics at the University of Michigan

Justin Wolfers, a professor of public policy and economics at the University of Michigan, wrote in a post on X that markets would be glad that the rate hike decision means Warsh is "more of a Serious Kevin than a Sockpuppet Kevin."

"Silent Kevin remains largely silent. It's up to you to guess the what, the where, the why, and the next," Wolfers said on Wednesday. "Remember, he's Silent Kevin because he wants markets to focus on the economy rather than the Fed."

Bill Banfield, the chief business officer at Rocket Mortgage, said in commentary that the foundation for the housing market remains "solid," though elevated rates squeeze affordability.

"For anyone house hunting right now, it's a buyers' market in many metros, with inventory at a six-year high and plenty of room to negotiate," Banfield said.

"That changes the dynamic for buyers, especially those who remember the ultra-competitive market in recent years," Banfield added.