Markets anticipate a quarter-point interest rate hike at the Federal Open Market Committee meeting on September 15-16. Current pricing reflects an 80.5% probability of a rate increase by the end of this meeting. The federal funds target range currently stands between 3.50% and 3.75%, with FOMC projections forecasting one additional hike on average in 2026. A potential rate increase could negatively impact long-duration bonds while benefiting short-duration and floating-rate instruments. Investors will closely monitor Jerome Powell’s statements and upcoming economic data to assess the future direction of monetary policy.
Source: Read the original article
