The Odds of the Fed Ramping Up Its Rate-Hiking Cycle Are Skyrocketing, and 4 Variables -- 2 Directly Tied to President Donald Trump -- Are to Blame
There’s now a 96% chance that Fed Chair Kevin Warsh and the Federal Open Market Committee (FOMC) will raise interest rates at least once by Jan. 27, 2027.
As Wall Street has experienced an unprecedented year, the Federal Reserve's rate-hiking cycle has made significant progress. Kevin Warsh, the 17th chair of the central bank, assumed his position on May 22, marking a pivotal moment. The Fed's first rate hike of the 21st century commenced on September 16, with a 25 basis point increase to a range of 3.75%-4.00% to tackle inflation.
As of August 25, according to the CME Group's FedWatch Tool, the likelihood of interest rates staying at 3.50%-3.75% or rising by a quarter point by the January 27, 2027 FOMC meeting stood at 64.4%. However, certain variables directly linked to President Donald Trump could be contributing to these odds skyrocketing.
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