Bloomberg Surveillance · Monday, August 31, 2026
Christina Huber anticipates one to two rate hikes this year, driven by an FOMC more inclined to tighten than Chair Warsh might be. She notes that recent FOMC minutes and speeches support this view. However, she cautions that rate hikes may not effectively combat inflation driven by supply shocks.
“So I certainly do believe we're going to see rates go up in the shorter term. We'll probably get one to two rate hikes this year, even if Chair Warsh is inclined to sit on his hands.”
“I think we have an FOMC that is far more inclined to hike rates in the shorter term. That seems to be what we've gotten from the most recent FOMC minutes, as well as some of the speeches that we've heard recently.”
“Keep in mind that some of the inflation we're seeing today is being driven by supply shocks, not demand. And it's a lot harder to control that via monetary policy tightening.”