Julius Baer expects the Fed to December make its final rate hike 25 basis points, followed by a pause
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AT A GLANCE
Julius Baer expects the Fed to December make its final rate hike of 25 basis points, followed by an extended pause.
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⚡️Julius Baer: The Fed is expected to December raise rates 25 basis points, followed by an extended pause
BlockBeats reports that October 6, Julius Baer, Switzerland’s leading pure-play private bank and wealth management group, expects the Fed to December make its final 25-basis-point rate hike, followed by an extended pause.
The bank noted that the US labor market is cooling and financial conditions have tightened significantly, driven mainly by rising long-term Treasury yields and USD strengthening, rather than by rising short-term interest rates.December is now viewed as the most likely window for the final rate hike.
Original link https://m.theblockbeats.info/flash/370426
Key points
01
BlockBeats reported on October 6 Julius Baer’s forecast for the Fed’s interest-rate path.
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Julius Baer expects the Fed to December make its final 25-basis-point rate hike, followed by an extended pause.
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The bank noted that the US labor market is cooling and financial conditions have tightened significantly.
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The bank believes that tightening financial conditions are driven mainly by rising long-term Treasury yields and USD strengthening, rather than by rising short-term interest rates.
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The bank considers December the most likely window for the final rate hike.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a bank’s opinion on future interest-rate decisions, not a decision already made by the Fed. 25 basis points equal 0.25 percentage points; “pause period” means that the bank expects rates may not be raised again for an extended period after the final rate hike.
Why it matters to readers
Whether the Fed continues to raise rates will affect market expectations for the US interest-rate path. The report also lists a cooling labor market, rising long-term Treasury yields, and USD strengthening as phenomena underlying this view.
Beginners should understand this information as an institutional forecast and continue to distinguish forecasts from official policy decisions. They may watch whether the Fed ultimately raises rates in December and whether long-term Treasury yields and USD continue to strengthen.
Risks and unknowns
Whether the Fed will raise rates in December has not been confirmed.
December Whether the rate hike will be the final rate hike has not been confirmed.
Whether there will subsequently be an extended pause has not been confirmed.
The report relays BlockBeats’ account of Julius Baer’s view and does not provide an official decision by the Fed.
The body of the evidence only states October 6, without specifying the year.
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Basis Points
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