Strong Data Could Allow Three Fed Rate Hikes in 2027, Capecon Says
Dow Jones13:34
0534 GMT - U.S. economic data will remain strong and clear way for the Federal Reserve to hike interest rates three times in 2027, Capital Economics' James Reilly says in a note. That would be more than is currently discounted, "putting further upwards pressure on short-term real yields," the senior markets economist says. However, Capital Economics thinks that these hikes will be unwound in 2028 and suspects the long-end of the Treasury curve will remain quite well anchored, with the 10-year nominal yield holding at around 4.25%-4.50%, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 02, 2026 01:34 ET (05:34 GMT)
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