Analysis: The Federal Reserve may not raise interest rates until early 2027.

Economics supervisor David Doyle said that following the strong employment report released on Friday, Macquarie maintains its benchmark expectations for the Federal Reserve's interest rate path. "As we have been emphasizing for some time, we believe the next move will be a rate hike, with our benchmark timing in the first quarter of 2027," he said. He said that the risk of this expectation is now leaning towards an earlier rate hike, as the market has already priced in expectations of a rate hike in the fourth quarter of 2026. "In the coming weeks, the rhetoric from the Federal Open Market Committee may continue to shift from a dovish stance to a hawkish stance."