Citadel Securities Strategist Expects Fed to Raise Rates 25bp This Wednesday

According to Frank Fliat, macro strategy chief at Citadel Securities, the Federal Reserve may unexpectedly raise interest rates by 25 basis points this Wednesday (July 28). Fliat believes the move would reinforce Fed Chair Powell's commitment to price stability and underscore the central bank's policy independence. He notes the market may underestimate the Fed's hawkish pivot; interest rate swaps currently price in approximately 40% probability of a 25bp hike at this week's meeting.
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