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One last hurrah for the hawks

Fed officials appear set on another 25bp rate hike at next week’s FOMC meeting, which would take the fed funds rate to a 22-year high of 5.25%-5.50%. But a run of softer inflation readings over the next few months will convince the FOMC to scrap plans for further tightening beyond that, with the Fed’s next move likely to be a rate cut next year.

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