According to the latest Reuters survey of 101 economists ahead of the policy meeting on September 16, as many as 86 experts predict that the U.S. Federal Reserve (Fed) will raise the federal funds rate to the 3.75%-4.00% range. Notably, the long-term outlook also points to a tighter stance, with 37 out of 70 economists expecting the Fed to increase rates at least twice before the end of March 2027, a significant jump from 21/82 in the previous survey.
This shift in expectations suggests analysts are reassessing the resilience of the economy as well as underlying inflation pressures. With most experts leaning toward a scenario in which monetary policy remains at high levels for an extended period, it reflects the heavy pressure weighing on earlier easing forecasts.
For traditional financial markets, keeping rates at elevated levels will provide strong support for the U.S. dollar and put pressure on Treasury yields. Interest-rate-sensitive assets such as growth stocks or gold may face adjustment pressure if borrowing costs remain prohibitively high.
For the crypto market, a prolonged tight liquidity environment means large inflows of capital are unlikely to return to high-risk assets anytime soon. $BTC and many altcoins are likely to continue experiencing choppy, back-and-forth volatility and accumulation, as institutional investors maintain a cautious mindset while monitoring official developments from the upcoming FOMC meeting.
#Fed #InterestRates #MacroEconomics
This shift in expectations suggests analysts are reassessing the resilience of the economy as well as underlying inflation pressures. With most experts leaning toward a scenario in which monetary policy remains at high levels for an extended period, it reflects the heavy pressure weighing on earlier easing forecasts.
For traditional financial markets, keeping rates at elevated levels will provide strong support for the U.S. dollar and put pressure on Treasury yields. Interest-rate-sensitive assets such as growth stocks or gold may face adjustment pressure if borrowing costs remain prohibitively high.
For the crypto market, a prolonged tight liquidity environment means large inflows of capital are unlikely to return to high-risk assets anytime soon. $BTC and many altcoins are likely to continue experiencing choppy, back-and-forth volatility and accumulation, as institutional investors maintain a cautious mindset while monitoring official developments from the upcoming FOMC meeting.
#Fed #InterestRates #MacroEconomics