Macquarie: Fed Statement May Shift Hawkish, Rate Hike Most Likely in December

According to Macquarie Group on July 29, the U.S. Federal Reserve is unlikely to adjust rates at its current meeting, but statement wording is expected to shift in a hawkish direction. Market pricing implies roughly 35% probability of a rate hike. The next policy action is most likely to be a rate increase in December, with potential dissenting votes possible if rates hold steady. The statement's description of the unemployment rate may become more optimistic.
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