David Doyle Sees Fed Rate Hike as Next Move, With Baseline Timing in Q1 2027

Macquarie Group’s head of economics, David Doyle, said the bank has maintained its baseline view on the U.S. Federal Reserve’s interest-rate path after last Friday’s strong nonfarm payrolls report. According to Jin10, Doyle said Macquarie continues to believe the Fed’s next move would be a rate hike, with a baseline timing of the first quarter of 2027. Doyle added that risks around this view have shifted toward an earlier hike, and that markets have priced in the possibility of a rate increase in the fourth quarter of 2026. He also said the Fed’s messaging in the coming weeks may continue to move from a bias toward rate cuts to a bias toward rate hikes.