More than half of economists expect the Fed to raise interest rates by the end of the year, Trump's call for rate cuts may have little impact on the Fed's decision
BlockBeats News, June 16th, A survey conducted by the Financial Times in conjunction with the University of Chicago Booth School of Business' Rustandy Center of 47 economists revealed that over half of the respondents expect the Federal Reserve to raise interest rates by at least 25 basis points by the end of 2026 to address the near 3.8% inflation level. This marks a significant reversal in market expectations compared to the majority of economists anticipating rate cuts at the beginning of March.
Despite the peace agreement between the United States and Iran, the potential reopening of the Hormuz Strait to navigation to ease energy price pressures, many economists believe that inflation will continue to transmit to the real economy, and high inflation may persist for a prolonged period.
The market broadly expects that the first FOMC meeting chaired by the newly appointed Fed Chair Powell will keep interest rates unchanged. However, with the U.S. labor market remaining robust and the economy showing resilience, internal Fed support for future rate hikes is increasing.
Joe Lavorgna, Chief Economist for the Americas at Sumitomo Mitsui Banking Corporation who previously served as an advisor to U.S. Treasury Secretary Mnuchin, stated that President Trump's continued calls for rate cuts will not influence Powell's policy decisions, as the interest rate path will ultimately depend on economic data.
Furthermore, the Financial Times survey revealed that nearly 70% of the surveyed economists believe there is a higher-than-normal probability of a more than 20% pullback in the S&P 500 index in the next year. They consider current tech stock, particularly the semiconductor sector, to be overvalued, indicating a structural bubble risk in the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Novavax Inc. Stock Slides 9.9%, Underperforms Peers
This article was automatically generated by Dow Jones using technology from Automated Insights. Shares of Novavax Inc. shed 9.9% to $11.32 on what proved to be an all-around favorable trading session for the stock market, with the NASDAQ Composite Index rising 0.4% to 27,599.79 and the Dow Jones Industrial Average rising 0.5% to 51,521.28. Novavax Inc. closed 15.4% below its 52-week high of $13.39, which the company achieved on October 5th. The stock underperformed when compared to some of its peers, as Johnson & Johnson rose 0.7% to $254.78, Pfizer Inc. rose 0.3% to $27.50, and Merck & Co. Inc. rose 1.72% to $141.94. Trading volume totaled 19.3 million, compared to the 50-day average of 5.3 million. Data source: Dow Jones Market Data, FactSet (END) Dow Jones Newswires October 06, 2026 16:33 ET (20:33 GMT)
Evogene announces special shareholder meeting
Evogene will hold a special general meeting of shareholders in Rehovot, Israel on Nov. 10, 2026. Shareholders will vote on electing Oz Adler and Dr. Adi Zuloff-Shani to the board. Ballots will also cover the election of Itay Maroz and Shahar Zadok, subject to approval of a cooperation agreement. The meeting will also vote on a cooperation agreement between Evogene and L.I.A. Pure Capital and Invest-Pro Shukai Hon. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Evogene Ltd. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001178913-26-004722), on October 06, 2026, and is solely responsible for the information contained therein.
UK names 6 banks to lead first digitally native government bond
Altaris Completes Acquisition of Simulations Plus
02:57 PM EDT, 10/06/2026 (MT Newswires) -- Simulations Plus (SLP) said Tuesday that affiliates of Altaris have completed the acquisition of the company. The transaction price was $375 million, with each Simulations shareholder receiving $18.50 in cash per share, according to an earlier statement. As a result of the acquisition, Simulations said it has become a privately held company and its common stock will no longer trade on the Nasdaq Global Select Market.
Crypto prices
More
