Inflation Data Likely Forces Another Fed Rate Hike This Year

0923 ET - Another set of higher-than-expected inflation data likely forces the Federal Reserve's hand on raising rates again this year, Northlight Asset Management's Chris Zaccarelli says in a note. The Fed isn't expected to raise rates at the FOMC meeting later this month, given the meeting's proximity to the midterm elections, meaning the rate will likely move up a quarter-point at the Fed's December meeting, Zaccarelli says. Markets have been resilient in the face of the rising rates in the second half of 2026, and will likely remain resilient through the end of the year, he says. "But we need to get through the uncertainty of the rapidly approaching midterm elections, and the volatility that this creates, before the market can finish the year stronger," Zaccarelli says.