FED SIGNALS HIGHER RATE PATH, MARKETS PRICE HAWKISH SHIFT Federal Reserve projections show the median funds rate rising to 3.8% in 2026 (fr…
FED SIGNALS HIGHER RATE PATH, MARKETS PRICE HAWKISH SHIFT
Federal Reserve projections show the median funds rate rising to 3.8% in 2026 (from 3.4%), 3.6% in 2027, and 3.4% in 2028, with the long-run rate steady at 3.1%. Inflation is expected to stay elevated, with PCE not returning to 2% until 2028. Markets are pricing a hawkish shift, with traders assigning high odds of further hikes before 2028.
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