Barclays expects the U.S. Federal Reserve to raise interest rates by 25 basis points in September and again in December, reversing its earlier view that the central bank would keep rates unchanged for the rest of the year, Reuters reported.
The shift follows recent remarks from Fed Chair Kevin Warsh that strengthened expectations of further monetary tightening. His comments at the Federal Reserve’s Jackson Hole symposium indicated that policymakers remain concerned about inflation and could consider additional rate increases if price pressures fail to move convincingly toward the central bank’s 2% target.
