SEP suggests only limited appetite for further Fed hikes
The Fed’s interest rate hike today is likely to be followed by at least one more later this year, probably in December. While the new Summary of Economic Projections (SEP) implies that the Fed may be content with just two hikes in total, we judge that Fed officials are underestimating the potential for the unemployment rate to decline, so we are sticking with our forecast for a third hike in 2027 as well.
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