Another Hike By Year End And No Cuts On The Horizon
The Fed hiked by 25 basis points and alluded to another hike, as the market expected and as we surmised in our prior Commentary. The more important takeaway from yesterday's FOMC meeting is what comes next. In the prior Commentary, we pointed out three things to watch: the Summary of Economic Projections (SEP), the balance of risk language, and Warsh's framing of risks and policy. Let's review those three factors and begin to appreciate that today's action is likely to be followed by at least another rate hike this year and not a "one and done" policy. SEP: The median 2026 Fed Funds ending…
The skinny
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