Another Fed rate hike imminent? Key points to know
- What to look for
- You can review specific clues to the Fed's next move, including the 20% probability of a rate hike in month 10, the setup of the Cook hearing, and wait-and-see comments from officials close to Warsh.
- Why it matters
- Learning to interpret interest-rate and inflation-expectations indicators alongside Fed officials' remarks can help you independently assess market reactions before and after future FOMC meetings.
AI summary
The CNBC host and reporter Liesman highlight rising yields across the curve and a 10-year yield around 5.25%, reporting Governor Waller's remarks suggesting further rate hikes. While the market leans toward a hike in month 12, the probability of a hike in month 10 is said to have fallen to 20%. Controversy over the legality of the White House hearing on Lisa Cook continues, with observers noting that its structure, in which the president makes the final decision, is unprecedented since Hoover's presidency. Hassett calls the allegations against Cook serious and criticizes her refusal to resign, while Cook's representatives and Senator Warren reject the hearing. Williams and Vice Chair Jefferson argue for taking more time, lending support to a wait-and-see approach. In contrast, there is speculation that some committee members favor an immediate hike because gas prices are worsening inflation expectations. Analysts say the president continues to attack the Fed while blaming the committee for recent rate hikes. All directional outlooks are the speaker's conditional judgments, not definitive predictions of short-term prices.