What are the odds of a September rate hike?

After Powell’s remarks that “we have a long way to go” and an affirmation of the Fed’s 2% inflation target, the odds of a September rate hike surged to around 20% and the probability of a November rate hike rose to more than 50%, according to CME Group data.

Should interest rates be hiked?

Anyone anticipating a rapid cut in interest rates would have been disappointed by Powell's remarks. He pointed to higher-than-expected GDP growth and robust consumer spending as signs that further rate hikes may be needed. Rising interest rates have been a significant drag on the housing market.

Will FED rate hikes be more moderate?

Economists expect the Federal Reserve to continue with its regime of rate hikes, but the question is whether the increases will more moderate. Currently, economists are pegging a 0.5 percentage-point increase in September, followed by two 0.25 percentage-point hikes in the last two Fed meetings of the year, according to Factset.

Are economists pegging a 0.5-point hike in September?

Currently, economists are pegging a 0.5 percentage-point increase in September, followed by two 0.25 percentage-point hikes in the last two Fed meetings of the year, according to Factset. "They aren't stopping anytime soon, but I don't think we'll remain in 5th gear for all that long," Schulz noted.