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While Federal Reserve Chairman Kevin Warsh faces an interest-rate showdown of doves and hawks next week that speaks to the credibility of the central bank as well as his own, investors are mulling how best to navigate the expected market volatility that awaits, regardless of his efforts.
That's in part because the Fed traditionally doesn't play the "one and done" game when it comes to increasing the benchmark short-term interest rate. The Federal Open Market Committee reset of the Federal Funds Rate usually arrives in a package of at least two.
"For the Fed, it is time to put up or shut up," Omair Sharif, president and founder of Inflation Insights LLC, wrote in a note to clients first reported by Bloomberg.
TD Securities is among the big banks which raised Fed forecasts beyond two hikes after the Sept. 11 August CPI report rose more than expected.
