Fed Might Deliver Fewer Rate Hikes than Market Expects
Dow Jones
Sep 29
0507 GMT - The Federal Reserve is expected to hike interest rates two more times after the September raise, to be delivered in December and March, though markets continue to be pricing in a more aggressive cycle, Morgan Stanley rates strategists say in a note. "Market uncertainty around the Fed, growth, corporate issuance, and oil are all contributing to rising expectations of monetary tightening over the next 12 months," they say. The strategists do not see the Fed delivering that much tightening, as the fundamental drivers of the Fed path will only become more visible later in the year, they say. Money markets currently price in 100 basis points of rate hikes over the next 12 months, according to LSEG.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.