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
Key PointsThe FOMC kicked off only the fourth rate-hiking cycle of the 21st century on Sept. 16 to combat persistently elevated inflation.
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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