BNP Paribas Changes Fed Call, Expects Rate Hikes Starting in December -- Market Talk

Dow Jones17:35

0935 GMT - BNP Paribas changes its call for the Federal Reserve's rate path. "We now expect the Fed to reverse 2025's three 'insurance' rate cuts at sequential meetings, beginning in December," its analysts say in a note. "The aim will be to reduce the level of monetary stimulus, contain inflation expectations and stabilize the unemployment rate at a low level, in our view." Since January, BNP Paribas analysts have seen the Fed as likely on hold this year, but Friday's solid payrolls tilts the scales. "We now expect the Fed's next policy move to be a rate hike, aimed at withdrawing the monetary stimulus provided by last year's three 'insurance' cuts," they say. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 08, 2026 05:35 ET (09:35 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment