Array
The Federal Reserve is expected to raise its key interest rate this week, but it’s unlikely to hike by 100 basis points, a massive move that would rattle investors already anxious after the August inflation report, CFRA Research said Monday.
« We think a 100 bps hike would unnerve Wall Street, as it would imply that the Federal Open Market Committee is overreacting to the data rather than sticking to its game plan, » Sam Stovall, chief investment strategist at CFRA, said in a research note.
It « would increase the likelihood that the FOMC will eventually overtighten and lessen the possibility of achieving a soft landing, » he said.
