Investors head into next week’s Federal Reserve meeting bracing for a possible rate hike even as some remain uncertain the central bank will deliver, a Reuters Wall Street week-ahead report said. The Federal Open Market Committee meets September 15-16, with a decision expected Wednesday. Futures lean toward a 25 basis-point move from the current 3.50% to 3.75% target range. CME FedWatch odds cited Friday clustered in a roughly 86% to 90% band, including Kiplinger’s 86% up from 71% a day earlier; LSEG late Friday put the chance over 80%.
BNY Wealth’s Alicia Levine told Reuters the weight is now on a September hike and warned a broader hike-cycle signal would be poor for equities. State Street’s Cayla Seder described uncertainty as yields rose alongside hike expectations. The 10-year yield touched 4.99% early Friday before easing toward about 4.97% late. August core CPI rose 0.3% month over month. Reuters framed Wednesday as a Warsh credibility test without quoting him directly.
Sources: Reuters Wall St Week Ahead (Lewis Krauskopf; brace/uncertainty; LSEG over 80%; Levine/Seder); Kiplinger (CME FedWatch 86% from 71%); Gate/CME morning stamp (85.6% labeled).
