Bloomberg Surveillance · Thursday, September 10, 2026
Mike Reid of RBC's base case is for the Fed to remain on hold, citing that a significant portion of the consumer base is already feeling pain and relies on credit. He warns that further rate hikes could crush demand in this segment of the population.
“I mean, look, right now our base case is that the Fed remains on hold. And a big part of that is when you look at the economy, you know, I just mentioned that the kind of older cohort, you do have a younger cohort, a lower income cohort that is feeling pain already, even before this energy shock.”
“So what that says to us is you have a very large share of the consumer base that is relying on credit. And if you start hiking with a blunt tool, that is going to impact those folks, again, disproportionately.”
“So there's a risk that you could really crush demand in a consumer base that is already feeling this pain.”