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The Wall Street bank previously expected the Fed to hold rates steady through year-end; markets now price a 60.4% chance of a September hike
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Barclays now expects the Federal Reserve to raise interest rates at its September and December meetings, reversing a prior forecast of no changes through the remainder of the year, after Federal Reserve Chair Kevin Warsh delivered a hawkish address at the annual Jackson Hole symposium last Friday, according to Reuters.
The Wall Street brokerage described Warsh's speech as "notably hawkish" and said it offered an implicit case for further tightening, according to Reuters. Each of the two projected increases would amount to 25 basis points. The Fed's benchmark federal funds rate currently stands at a target range of 3.5% to 3.75%.
