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Analysts Set To Continue Revising Up Hike Forecasts

FED

In our Fed meeting review,Fed meeting review, we summarize a couple dozen sell-side analyst reviews. The following analysts upped their Fed rate hike outlooks following the September FOMC meeting: ABN Amro, Barclays, BNP Paribas, BofA, Danske, Goldman Sachs, JPMorgan, SocGen, TD, UBS.

  • There will likely be more, with about half the sell-side going into the meeting with an expected 2023 terminal rate of 4.25-4.50% or below – lower than the new Fed projection.
  • Another 75bp Fed funds hike in November, with 50bp in December, is now firmly the baseline outlook, with the peak rate seen above 4.5% next year.

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