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Fed likely to raise rates by 25 bps as inflation stays above 2%, risking credibility if it doesn't.

Market News
13 Sep 2026
Seeking Alpha
View Source
Neutral
Fed likely to raise rates by 25 bps as inflation stays above 2%, risking credibility if it doesn't.

Inflation remains above the Federal Reserve's 2% target, prompting strong market expectations for a 25 basis points rate hike. Global central banks are also increasing rates, reflecting a broader tightening trend. Failure by the Fed to raise rates now could damage its credibility with investors and markets. This situation highlights ongoing inflation challenges and the Fed's commitment to controlling price growth through monetary policy adjustments.

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