Fed Expected to Hike Rates for First Time Since 2023 as September Meeting Begins

MacroDigital Finance Impact 4
โดย Yahoo Finance·US·Read original
Summary · why it matters

The Federal Reserve's September policy meeting began Tuesday at 10:30 AM ET, with markets overwhelmingly expecting the central bank to raise interest rates by 25 basis points when it issues its decision Wednesday at 2 p.m. ET. Such a move would be the Fed's first increase in the fed funds rate since 2023, when the Jerome Powell-led central bank concluded its post-pandemic hiking campaign. Inflation has now remained above the Fed's 2% target for more than five years, with the war in the Middle East serving as the latest driver of higher prices. As Fed Chairman Kevin Warsh said in his Jackson Hole Symposium speech in August, "We have work to do." Traders were pricing in a roughly 92.7% chance of a hike, according to CME Group's FedWatch tool, though a hold isn't entirely off the table. Markets will also scrutinize the Fed's Summary of Economic Projections, the so-called dot plot, for clues about monetary policy in the next few years.

Impact on stocks 3

Carbon Removal (DAC) · 1 stocks
CME Group Inc
CME
▲ PositiveDemandrelevance

Fed hike expectations drive heavy trading in FedWatch-implied rate futures, boosting CME's derivatives volumes.

Others · 2 stocks