Fed Has 'Little Choice but to Take Action Now,' Says Corpay
Dow Jones
1 hour ago
0945 ET - The August CPI showing inflation rising 3.4% year-over-year, and the core up 2.4%, strengthens the case for a Fed rate hike next week says to Karl Schamotta, Chief Market Strategist at Corpay in a note. "In our view, the balance of risks facing the Fed now favors raising rates. With core price growth showing signs of accelerating, oil benchmarks up more than 78% this year, tariffs rising once again, Washington floating fiscal giveaways, and artificial intelligence investment still flowing, there's little to suggest that inflation pressures are set to ease in the months ahead, giving officials little choice but to take action now." Futures traders seem to agree with the CME's FedWatch Tool now showing an 85% likelihood that the Fed will raise rates by a quarter-point.
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