Tag Archives: Fed hawkishness

Fed sticks to routine of one hike per quarter, with growing chance of extra rate increase next year.As widely expected, the Fed hiked rates another 25bps on 26 September, continuing its routine of raising rates by 25bps each quarter.The Fed displayed optimism about US growth prospects. Chairman Powell said that the US was in a bright spot that was expected to last. This optimistic tone was echoed by a rise in the Fed’s GDP growth forecasts, including for next year – even as higher trade...

Markets are speculating about the potential hawkishness of the Fed’s next chairperson, but we doubt there will be any ‘regime change’ in monetary policy.The Trump White House has reportedly narrowed the list of candidates for the role of Fed Chair to five people, and a decision could be announced in the coming days.The initial market reaction could be guided by the perceived hawkishness of any nominee compared with Janet Yellen. John Taylor and Kevin Warsh are perhaps the most hawkish of the...