News Flash: 70% of Wall Street Institutions Are Calling for at Least a 50-Basis-Point Fed Rate Hike in 2026
Trumpflation and the artificial intelligence (AI) infrastructure build-out are expected to force Kevin Warsh and the Federal Open Market Committee (FOMC) into action.
Overview
Today, Sept. 16, is the day all of Wall Street has been waiting for. In mere hours, at 2 p.m. ET, Fed Chair Kevin Warsh and the Federal Open Market Committee (FOMC) will announce what, if any, monetary policy changes have been made to the federal funds target rate -- and that answer is expected to cause wild vacillations in the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC).
Over the last few weeks, the odds of a Fed rate hike have hovered around 50-50, both on prediction markets and for the CME Group's (NASDAQ:CME) proprietary FedWatch Tool. But there's been a decisive shift in expectations following the release of the August inflation report.
All eyes are on Fed Chair Warsh and the FOMC. Image source: Official Federal Reserve Photo.
Details
Source
Originally published at www.fool.com.