Huatai Securities Says Fed May Need Three Rate Hikes Over This Year And Next

Huatai Securities said stronger recent U.S. fundamentals and recurring Middle East tensions leave long-end U.S. Treasury risks in place, and argued that the Federal Reserve's credibility would struggle to withstand a September pause, according to Ming Pao. The report said a September rate hike has become a must for the Fed. It added that market pricing for the continuity and overall scale of Fed tightening has risen sharply, and that the central bank may need to raise rates three times in total over this year and next based on fundamentals and risk-premium considerations.