economy15 days ago
Fed Officials Signal Further Hikes as Inflation Stays Stubbornly Above 2% Target
Philadelphia Fed President Anna Paulson and New York Fed President John Williams both indicated that further interest rate hikes are likely in 2026 to combat persistent inflation. Paulson noted that underlying inflation remains between 2.5% and 3%, well above the 2% target, despite recent rate increases. Market expectations have shifted significantly, with traders now pricing in a 64% chance of another hike in October and potentially four quarter-point increases by the end of 2027.
