Lates News

PGIM Chief U.S. Economist Robert Sorkin said the signal from the Fed's latest meeting indicates that with only a slight push, the Fed could implement three rate hikes, or even take more tightening action if necessary. This hike was a hawkish one, with the Fed signaling one more rate increase this year. Among the 18 Fed officials who submitted projections, 8 expect that by the end of 2027, this rate-hike cycle will amount to three increases in total. Sorkin said in a report that Fed Chair Warsh mentioned the Fed "withdrew some of its easing measures," which sounds like he and other participants viewed (Wednesday's) action as merely a small step toward tightening financial conditions, implying that more moves may follow. Sorkin added that if inflation remains elevated, the risk of further Fed rate hikes remains high.