Deep Tides TechFlow message: On September 12, according to Jintou Data, “the Federal Reserve’s megaphone” Nick Timiraos said in an article that investors have largely come to the view that the Federal Reserve will raise rates for the first time in three years next week. If a single 25-basis-point rate hike is implemented, it would only reflect the assessment that interest rates had been at the wrong level previously, and would not fully address the inflation problem.
Federal Reserve Chair Worsh had previously said publicly that he is not good at “fine-tuning” monetary policy. Analysts believe it is unlikely that he would declare the job done after just one rate hike. As a result, the market no longer sees this meeting as a one-off decision. Instead, it now expects that the cumulative number of rate hikes through June next year will be at least three times, higher than the previous expectation of two times.
Federal Reserve Chair Worsh had previously said publicly that he is not good at “fine-tuning” monetary policy. Analysts believe it is unlikely that he would declare the job done after just one rate hike. As a result, the market no longer sees this meeting as a one-off decision. Instead, it now expects that the cumulative number of rate hikes through June next year will be at least three times, higher than the previous expectation of two times.