Bloomberg Surveillance · Tuesday, September 8, 2026
Peter Scheer of Academy Securities believes the Federal Reserve should hold rates steady, arguing that rate hikes are unlikely to significantly curb inflation driven by factors like hyperscaler build-outs. He anticipates stability in the front end of the curve due to the Fed's stance, while the long end will continue to be influenced by supply and demand dynamics, leading to slightly higher yields.
“So I think the one thing the Fed has to really do is push back on saying, we have two sources of inflation right now, at least in my opinion. One is the war. Hiking rates is not going to help. The other is this hyperscaler buildup, right? The compute buildup is massive. But I don't think raising 50 basis points to 100 basis points is going to stop that, right?”
“So I would stay the course, watch and see how this plays out.”
“The front end of the curve is completely determined by the Fed. And I think they're going to kind of be on hold. I think they're going to push back on the need of hiking. And yes, we see the inflation there. But if you hike and it's really not going to help inflation, why would you bother hiking? So I think we see stability.”