Bloomberg Surveillance · Wednesday, July 22, 2026
While the base case is for the Federal Reserve to hold rates steady, the market is fully pricing in a hike by year-end. Sapatri states that if the Fed doesn't deliver a hike as expected by the market, it could induce volatility.
“But the market is fully pricing in a hike by the end of the year.”
“So at some point the market's going to dictate to the FED what the FED should do.”
“If the market is fully priced for a hike and the FED doesn't deliver, then the Fed's going to be inducing volatility.”