The move to the front of the Fed suggests new rate hikes
The Federal Reserve's decision to raise interest rates by a quarter of a point, despite the White House's outright opposition in a year of legislative elections, fuels the market's expectation that there will be further hikes before 2027.
The US Federal Reserve has raised interest rates by a quarter of a point, despite opposition from the White House, in a move that has led markets to expect further increases before 2027. The decision, the first rate hike in over three years, was widely expected, but the Fed's message has been interpreted as a sign that more hikes are to come.
16 of 18 Fed officials expect at least one more rate hike this year, with four predicting two more. The markets are now pricing in another rate hike before the end of the year, possibly in December, subject to upcoming inflation reports and energy price developments. The move has been seen as contradicting the White House's narrative that there is no inflation problem in the US, ahead of the November 3 midterm elections.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
