{
  "id": 14403140,
  "title": "News Flash: Trumpflation Is Expected to Ramp Up the Fed's Rate-Hiking Cycle in 2027",
  "url": "https://urgent.news/2026/10/14/news-flash-trumpflation-is-expected-to-ramp-up-the-feds-rate-hiking",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T08:06:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/14/trumpflation-is-expected-to-ramp-up-fed-rate-hiking-cycle-in-2027/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The September inflation report, scheduled for publication on October 14 at 08:30 a.m. ET, will play a crucial role in guiding the Federal Reserve's monetary policy. In recent times, the rapid growth of artificial intelligence (AI) has propelled major stock indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite to new record highs. However, persistent inflation, particularly \"Trumpflation\" stemming from President Donald Trump's policies, is becoming increasingly challenging to ignore.\n\nThe Federal Open Market Committee (FOMC) meeting in two weeks' time is a key event, with the odds of a rate hike on October 28 now at just 17%, according to the CME Group's FedWatch Tool. Despite this, the majority of policymakers forecast additional rate hikes before the year's end. The September dot plot revealed that 16 out of 18 policymakers (not all of whom vote) expect another rate hike before the end of the year.\n\nAs of September 16, the Fed had raised interest rates a quarter point to 3.75% to 4%, marking the highest rate since late 2025. The unanimous 12-0 vote reflected a commitment to delivering price stability, stating that inflation remains elevated and the policy action supports a timelier return to the Committee's 2 percent goal.\n\nLooking ahead, the CME's FedWatch Tool projects a high likelihood of several rate hikes by September 15, 2027. The odds of the federal funds target rate remaining unchanged or rising by 25 basis points over the next 11 months are less than 6%. This indicates a growing likelihood of the Fed adopting a more aggressive stance, with Trumpflation being a significant factor behind the rising odds. While inflation is a natural consequence of economic expansion, Trump's policies, including tariffs and the Iran war, have amplified price increases, directly impacting consumers' wallets.\n\nTariffs, intended to protect jobs, promote domestic manufacturing, and make U.S. goods more competitive, have been in place for over a year, contributing to higher consumer prices. For instance, tariffs added 2.9 percentage points to goods price inflation, and their absence would have led to slightly lower prices. A 10% across-the-board tariff could potentially raise consumer goods prices by 2.6% after one year, with two-thirds of that increase stemming from pricier imports and the remainder from domestically produced goods facing higher input costs and reduced import competition.",
  "summary": "Federal Open Market Committee (FOMC) policymakers aren’t anywhere close to their goal of delivering price stability -- and that’s bad news for Wall Street.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "News Flash: Trumpflation Is Expected to Ramp Up the Fed's Rate-Hiking Cycle in 2027",
        "url": "https://urgent.news/2026/10/14/news-flash-trumpflation-is-expected-to-ramp-up-the-feds-rate-hiking-14411401",
        "published": "2026-10-14T08:26:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}