Wall Street is looking beyond this week's Federal Reserve interest-rate decision to a potentially bigger market-moving signal: the Fed's latest dot plot and what it says about the path for rates after an expected quarter-point hike.
Fed Chair Kevin Warsh faces a pivotal test of his inflation-fighting credibility as policymakers confront hotter prices, rising energy costs, and mounting bets on further rate increases.
A hike on Sept. 16 would be the Fed's first increase since July 2023, but investors may care even more what the dot plot signals for additional hikes and how aggressively Warsh intends to push rates to bring inflation back to the central bank's 2% goal.
Note that a rate hike is certain to draw highly vocal criticism from President Donald Trump and his allies, who have been campaigning for a drastic slash to 1% or less for years.
Remember, the Fed doesn't traditionally pull the "one and done" game when it comes to increasing the benchmark short-term interest rate. The Federal Open Market Committee reset of the Federal Funds Rate usually lands in a package of at least two, if not more.
#rate
Fed Chair Kevin Warsh faces a pivotal test of his inflation-fighting credibility as policymakers confront hotter prices, rising energy costs, and mounting bets on further rate increases.
A hike on Sept. 16 would be the Fed's first increase since July 2023, but investors may care even more what the dot plot signals for additional hikes and how aggressively Warsh intends to push rates to bring inflation back to the central bank's 2% goal.
Note that a rate hike is certain to draw highly vocal criticism from President Donald Trump and his allies, who have been campaigning for a drastic slash to 1% or less for years.
Remember, the Fed doesn't traditionally pull the "one and done" game when it comes to increasing the benchmark short-term interest rate. The Federal Open Market Committee reset of the Federal Funds Rate usually lands in a package of at least two, if not more.
#rate
2 hours ago
