Fed Hike Would Give Warsh 'Massive' Credibility, BofA Says -- Market Talk
Dow Jones2026/07/28 13:420942 ET - An interest rate increase by the Fed tomorrow can't be ruled out and it would give Chairman Warsh "massive inflation credibility," Bank of America strategists write. Although they expect a hold with a couple of hawkish dissents, there is more uncertainty than usual, as oil prices spiked following June's soft inflation numbers. BofA points out that since 1994 the Fed has never hiked with less than 60% priced. According to CME, a hike is priced at 32%. BofA expects the hawkishness to flatten the Treasury curve, with shorter-term yields rising and longer-term ones falling. That would also strengthen the dollar, the strategists say. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
July 28, 2026 09:42 ET (13:42 GMT)
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