Fed Rate Hike in July Viewed as Unlikely

Dow Jones13:29

0529 GMT - Investors have become increasingly concerned that the Federal Reserve's next policy decision will be a quarter percentage-point hike, coming as early as this month, but this is unlikely to happen, says Phil Orlando at Federated Hermes. "We disagree, expecting the Fed will look through the energy supply shock, which should be temporary, and keep rates unchanged," the chief market strategist writes in a note. Last week's disappointing U.S. labor-market data prompted markets to push out their expectations for an eventual rate hike to later this year. Money markets price in a 22% probability of a 25-basis-point rate increase in July, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 10, 2026 01:29 ET (05:29 GMT)

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