Fed Rate Hike Spurs Hawkish Repricing; Three More Hikes Priced by Mid-2027

The Federal Reserve raised interest rates last week, confirming market expectations, and markets have since priced in three additional hikes by mid-next year. The article argues that rate hikes should not be the only policy tool, suggesting potential debate over alternative measures. This shift to a more hawkish stance signals tighter financial conditions, impacting risk assets and the dollar.