Standard Chartered now expects Fed to raise rates in December 2026
The bank drops its call for no change this year and joins traders betting on further tightening.
Published
Standard Chartered said it now expects the Federal Reserve to raise its benchmark rate by 25 basis points in December 2026, abandoning its earlier forecast that the central bank would hold rates steady through the year.
The Fed lifted its target range to 3.75% to 4% and signaled one more hike this year. Fed Chair Kevin Warsh has said inflation remains too high, pointing to price pressure across multiple categories of goods. Traders are already pricing in additional hikes this year despite pushback from the White House, and DoubleLine chief executive Jeffrey Gundlach has said he sees virtually no chance current rates are as high as they will go, according to CNBC.
Standard Chartered's revised call sits apart from broader market pricing, which has largely bet on a pause or cuts by the end of 2026. The bank's shift toward a hike puts it closer to Warsh's hawkish tone than to the easing many investors had expected, a position that leaves rate-sensitive assets exposed if the Fed follows through in December.