Federal Reserve: One more 2026 hike then murkier path – BNY

BNY Markets’ John Velis maintains the view that the Federal Reserve will deliver one additional rate hike in December to preserve credibility after its latest hold. He sees a murkier outlook heading into 2027, arguing inflation is mainly supply-driven and expectations anchored. Velis doubts higher rates can address supply pressures but warns demand-side risks could justify more tightening later.