Bloomberg Surveillance · Thursday, September 10, 2026
Mike Reid of RBC believes the Federal Reserve is in a difficult position due to surging energy prices and ongoing tariffs, which are contributing to inflation and will likely pass through to CPI. He suggests that a single rate hike may not be sufficient to curb inflationary pressures.
“This is a tough spot for the Fed. We're talking about energy prices. That's the number one concern. Let's not forget we still have tariffs on the table, which are adding pressure.”
“And ultimately, this is going to pass through from PPI into CPI.”
“One hike we just don't think would be enough in this case. If you really want to start to bring down the demand side of the inflationary pressures, it's going to take more than 25 basis points of hikes.”