U.S. Interest Rates Likely to Remain Elevated Going Into 2027 -- Market Talk
Dow Jones2026/09/17 00:580058 GMT - U.S. interest rates are likely to remain elevated going into 2027, says J.P. Morgan Asset Management's Tai Hui in a note. While forecasts from Federal Open Market Committee members didn't change much at the Federal Reserve's September meeting, the updated median projection implies one more increase by the year-end, says the strategist. The Fed remaining hawkish going into 2027 could prompt investors to reassess asset valuations, particularly those of relatively expensive technology stocks that could be sensitive to interest-rate movements, he says. A catalyst to extend the equity bull market therefore looks unlikely in the foreseeable future, he says. Still, the possibility of the U.S. policy rate returning to above 5.0% remains limited, he adds. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
September 16, 2026 20:58 ET (00:58 GMT)
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
Deutsche Bank: After the three major central banks hiked rates simultaneously, the market may once again underestimate the terminal interest rate
Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.
Crypto prices
More
