Santander Raises Fed Rate Hike Expectations to 25 Basis Points in December and March Next Year

Santander's Chief U.S. Economist Stephen Stanley has raised expectations for Federal Reserve interest rate hikes, predicting increases of 25 basis points in both December and March next year due to escalating inflation pressures. Previously, Stanley had only forecasted a rate hike in December and did not expect any action until 2027. In his report, he noted that this adjustment is based on strong economic performance, widening inflation pressures, and an increased assessment of the Fed's neutral policy stance. Stanley also mentioned that recent comments from Fed officials increasingly refer to the transmission of input costs to prices, which will soon drive inflation upward. He expects that as long as policy tightening is still necessary, the Fed will maintain a pace of action once every other meeting. He stated that if the economy continues to show signs of overheating, or if core inflation remains at 3% or above next year, a fourth rate hike could occur in June. He added that conditions are expected to ease by spring.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.