Federal Reserve policy: Slight hawkish shift preview – BNY
BNY strategists John Velis and David Tam preview the upcoming FOMC meeting under new Chair Kevin Warsh, expecting slightly hawkish changes to the statement and dot plot. They see the Federal Reserve signaling two-way risks to rates and dropping the projected 2026 cut, while not forecasting any rate cuts or hikes this year despite an improved outlook after the ceasefire.
New Fed Chair and hawkish tweaks
"We expect slightly hawkish changes to the statement and dots on Wednesday."
"The outlook improves on ceasefire, but we don’t expect rate cuts, or hikes, this year."
"Incoming Fed Chair Kevin Warsh presides over his first FOMC meeting this week, with the U.S.-Iran MOU adding a new consideration alongside the immediate monetary policy decision."
"We expect the FOMC statement to signal a clear two-way risk to rates, with the median dot likely dropping the single cut projected for end-2026."
"Warsh has been critical of forward guidance and may use the press conference — or limit it — to signal how much communication policy will change under his tenure."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street Sees Nifty at 30,000: Why Are Foreign Investors Still Selling Indian Stocks?
UBS: Maintains Tesla (TSLA.US) “Neutral” rating, target price $385, AI narrative dominates stock price pricing logic
UBS predicts that Tesla's global deliveries in the third quarter of 2026 (3Q26) will be approximately 470,000 vehicles, representing a year-on-year decrease of 5% and a quarter-on-quarter decrease of 1%.
Altcoin Price Targets Point to Six 2027 Levels
The AI frenzy withstands the "5% US Treasury yield"! Nasdaq hits new highs, strengthening the "80/20" pattern as Wall Street reassesses stock-bond allocation
The 30-year US Treasury yield briefly reached about 5.53%, hitting its highest level since 2004, while Brent crude remains above $100 per barrel. Risk assets have once again withstood the pressure, reflecting investors' continued belief that the commercialization of AI applications and corporate profit growth can to some extent offset the impact of rising financing costs and discount rates.
