Macquarie Changes Fed Call, Sees Rate Hike This Month

Dow Jones09-07 13:06

0506 GMT - Macquarie Group brings forward its expectation of a Federal Reserve interest-rate hike, now expecting it this month instead of December, following stronger-than-expected labor market data, says David Doyle, head of economics. The strong report, together with hawkish remarks on inflation from Chairman Kevin Warsh, has led to a shift in market expectations for Fed hikes, he says. Macquarie continues to anticipate a second 25-basis-point hike in the first quarter of 2027, Doyle says. August CPI data on Friday is likely to be a significant input into the September policy decision. "If this is strong, it will likely solidify a hike this month. In contrast, soft data could lead the FOMC to defer a hike to October or December."

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