Fed September Rate Hike Bets
The Federal Reserve is likely to hike interest rates in September based on current market pricing
Too little corroboration in the last 3 days to call a trend (9 articles). Watching for it to gain traction.
Market pricing reflects expectations that the Federal Reserve will raise rates in September, driven by persistent inflation above the 2 percent target and concerns among policymakers about the sustainability of current policy accommodation.
Fed rate expectations anchor the entire yield curve and drive real rate assumptions; shifts in the probability of near-term hikes can rapidly reprice long-duration bonds and trigger significant capital flows between fixed-income and equity markets.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"U.S. inflation above the two per cent target for more than five years and Warsh's colleagues concerned that if the policy-setting Federal Open Market Committee doesn't hike rates to get inflation back to that level, the central bank's credibility could suffer."
"Rising price pressures in the U.S. have lifted the implied probability of a September Federal Reserve rate hike to 51%, from 44% a day earlier."
"The greenback also drew support from higher Treasury yields after a Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh pointed to the potential for a September interest rate hike, depending on incoming data."
"The CME Group's FedWatch tool's projections show markets pricing a 54.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting."
"The US dollar was well supported as the rate hike thesis remains intact for now, with the US Dollar Index (DXY) edging 0.09 per cent higher to 99.762 points"
"US Federal Reserve Governor Lisa Cook has said she is prepared to support higher interest rates if inflation does not begin to move lower, underscoring that restoring price stability remains the central bank's top priority. She stated 'I am prepared to act by raising rates, if necessary'."
"Cook said inflation continues to run above the Federal Reserve's 2 per cent target and warned that policymakers must remain ready to act if price pressures prove more persistent than expected. She stated 'I am prepared to act by raising rates, if necessary'."
"I would rather get going now in small steps than wait till later, then we have a really entrenched inflation problem, and we have to raise rates aggressively"
"The CME Group's FedWatch tool's projections show markets pricing a 62.7% likelihood of the Federal Reserve hiking the current interest rates during its September meeting."