The Kansas City Fed composite index has risen to 14 from a previous reading of 10, surpassing forecasts of 8.5, according to data reported by FinancialJuice. The Kansas City Fed manufacturing index also climbed to 20, indicating an acceleration of manufacturing activity in the Tenth District. The U.S. Treasury has announced plans to purchase up to 6 billion dollars in long-term debt. This higher-than-expected reading is seen as evidence of stronger regional manufacturing activity that may influence the Federal Reserve’s future interest rate decisions. Market participants are now pricing in potential interest rate hikes by the Fed in 2026.
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