Bloomberg Surveillance · Wednesday, September 16, 2026
The Federal Reserve is perceived to be playing catch-up with monetary policy, having loosened too much in 2025. Current tightening aims to normalize rates in line with growth and inflation. A 75 basis point hike is unlikely to significantly impact earnings in the short term, with effects possibly delayed until late 2027 or 2028 due to the policy lag.
“The Fed, in my mind, is playing catch up. I think a lot of this is in 2025, they probably should not have loosened policy to accommodate the doge sort of cuts that were happening at the federal level.”
“Now we need to take back that insurance that was put into the marketplace in 2025 just to normalize policy rates to be in line with what growth and inflation conditions suggest.”
“If Fed policy tightens today, I wouldn't anticipate that really impacting earnings until late 2027 or 2028.”