Barclays sees two more Fed rate hikes this year after Warsh speech
The brokerage said 25-basis-point moves would follow hawkish remarks that lifted market bets on a September hike to 60.4%, CME Group said.
- Barclays now expects the Federal Reserve to raise rates by 25 basis points in September and December, reversing a prior forecast of no changes through year-end, after Federal Reserve Chair Kevin Warsh delivered hawkish remarks on Friday.
- Addressing the Jackson Hole symposium, Chair Kevin Warsh signaled policymakers would "have work to do" if inflation lacked confidence in returning to the 2% target, resisting explicit forward guidance.
- Although near-term inflation prints may appear "much softer," Barclays warned that "unfavorable base effects will work against progress by those metrics through year-end," complicating the inflation narrative.
- Traders increased bets on a September rate hike, with the CME Group's FedWatch tool showing a 60.4% probability of an increase and the 2-year Treasury yield climbing in response.
- Attention shifts to the Federal Reserve's next policy decision scheduled for September 16, which investors are monitoring for further confirmation of the rate path signaled by Warsh's address.
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Barclays Sees Two U.S. Federal Reserve Rate Hikes as Inflation Concerns Persist
Barclays now expects the U.S. Federal Reserve to raise interest rates by 25 basis points in both September and December, reversing its earlier forecast that ... The post Barclays Sees Two U.S. Federal Reserve Rate Hikes as Inflation Concerns Persist first appeared on [your]NEWS.
Barclays sees two more Fed rate hikes this year
نُشر هذا المقال أولاً عبر Cedarnews.net. لمتابعة المزيد من الأخبار والتقارير الحصرية، زورونا على موقعنا. Barclays sees two: Stock Futures Little Changed as Markets Weigh Warsh’s Hawkish Remarks WSJWarsh, After Talking Tough on Inflation, Faces a ‘No-Win. تم نشر هذا الخبر عبر موقع Cedarnews الإخباري. للاطلاع على مزيد من الأخبار العاجلة والتقارير الحصرية، زوروا موقعنا الرسمي.
The Economic Times
Times of IndiaUS Stock Market: Barclays turns hawkish on Fed, sees two rate hikes in 2026
Barclays has turned more hawkish on the US Federal Reserve, now expecting two 25-basis-point rate hikes in 2026. The brokerage sees increases in September and December, reversing its earlier call for unchanged rates. The shift follows hawkish remarks from Fed Chair Kevin Warsh and renewed concerns over persistent inflation.
According to DNB Executive Board member Bas ter Weel, the announced restraint in communication by the US central bank need not pose a problem. "There will not be less information, there will be different information coming from Washington," he said after attending the first public speech by new Fed Governor Kevin Warsh on Friday.
Barclays sees two more Fed rate hikes this year after Warsh speech
Barclays expects the U.S. Federal Reserve to raise interest rates by 25 basis points in September and again in December after Chair Kevin Warsh's latest remarks signalled a more hawkish stance, the brokerage said on Friday.
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