Live Updates > Live Update Details
2026-09-15 17:26:09
[Deutsche Bank: Fed's Policy Path Description of Rare Single Rate Hikes Will Provide Clues] ⑴ Deutsche Bank's chief U.S. economist, Matthew Luzzetti, stated that the Federal Reserve rarely raises the benchmark interest rate in a single instance, as the impact of a single rate hike is limited. Therefore, multiple rate hikes are highly likely. ⑵ However, he noted that how the Fed describes the potential rate hike path on Wednesday will provide clues to the direction of subsequent policy. For example, if Warsh states that the Fed will withdraw the three rate cuts implemented at the end of 2025 to address rising unemployment, this implies that two more rate hikes would be needed. ⑶ Luzzetti also mentioned another possibility: Warsh might characterize this rate hike as a "risk management rate hike," meaning the Fed expects inflation to cool but still chooses to raise rates to ensure inflation falls. This statement could suggest that only two more rate hikes are needed.
