TLDR Tech / Fintech
Citadel Securities expects surprise Fed rate hike under Kevin Warsh
Citadel Securities expects the Federal Reserve to raise rates by 25 basis points this week, arguing that a surprise move would strengthen Chair Kevin Warsh's inflation-fighting credibility and signal an end to heavily telegraphed policy decisions. The firm believes persistent inflation risks, a stable labor market, and recent energy price increases could outweigh softer payroll and inflation data, even though markets currently assign only about a 40% probability to a July hike.
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