US interest rate outlook

"We believe that the Fed’s objective in reining in inflation is still unfinished business."

AHEAD of its first meeting of the year, the market is pricing in more than 90% probabilities that the US Federal Reserve (Fed) will raise its interest rates by 25 basis points to 4.50% to 4.75% next week.

This expectation is relatively less aggressive in the context of how the Fed officials’ have been signalling the market and if its December 2022’s forecasts were to offer any guidance.