Fidelity: Fed May Delay Rate Hike Cycle to December, But September Hike Possibility Not Eliminated

Odaily News - Fidelity believes the Fed is more likely to delay the start of its rate hike cycle until December, provided that inflation and labor market data remain relatively strong. However, economic data and geopolitical developments over the next two months could still re-elevate inflation risks, so the possibility of a September rate hike has not been fully eliminated.

More importantly, this decision highlights the policy characteristics of the Walsh era: in the absence of a clear policy framework and forward guidance, the Fed will rely more heavily on real-time economic data and changes in financial conditions to make judgments.