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2026-09-17 12:26:10
[PGIM: The Threshold for Further Fed Rate Hikes Is Not High; Three-Step Tightening Path Gradually Becomes an Option] 1. Robert Sorkin, Chief U.S. Economist at PGIM, stated that the latest Fed meeting signaled that the conditions for further policy tightening are not stringent. A slight boost from economic data could trigger three rate hikes, and further action is not ruled out if necessary. 2. Sorkin pointed out that this meeting was a "hawkish rate hike," with the Fed signaling a possible one more rate hike this year. Of the 18 Fed officials who submitted forecasts, 8 expect three rate hikes in this cycle by the end of 2027. 3. He mentioned that Fed Chairman Warsh stated the Fed "withdrew some easing measures," a phrase that sounds more like viewing this action as a small step towards tightening financial conditions, implying there is still room for further action. 4. Sorkin added that if inflation continues to remain high, the risk of further Fed rate hikes remains high.
