TD Securities: Expects the Federal Reserve to initiate a rate hike cycle in September, forecasting three rate hikes in this cycle.

BlockBeats news, September 12 — TD Securities strategists said they expect the Federal Reserve to initiate the first of three rate hikes in this cycle in September, a shift from their previous forecast that the central bank would remain on hold for the remainder of 2026. Strategists including Oscar Munoz and Gennadiy Goldberg wrote in a research note today: "We expect a total of three rate hikes in this cycle, with the latter two increases coming in October and next January. The Fed may not provide forward guidance, but the dot plot should lean hawkish."

The revision to expectations came after U.S. August CPI released on Friday came in above expectations, prompting traders to raise their bets on near-term Fed rate hikes. The strategists wrote in the report: "After August CPI showed a lack of progress on inflation, we expect the Fed to begin its rate hike cycle in September."