SKN | Could a Fed Rate Hike This Week Mark the Beginning of a New Tightening Cycle?
Economic Reports & Macro Data Fed Expectations Reverse After Inflation Surprise The Federal Reserve enters its September meeting facing a dramatically different interest-rate outlook from just one week ago. A Reuters survey of economists now shows 86 of 101 respondents, or approximately 85%, expecting the central bank to raise its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%. Such a move would represent the first Fed rate increase since July 2023. The reversal is particularly notable because more than two-thirds of economists surveyed last week had expected policymakers to leave rates unchanged. Fed funds futures are now assigning roughly a 90% probability to a rate increase. Inflation Has Changed the Policy Equation The catalyst for the sharp shift was […]
