PGIM Chief Economist: The Federal Reserve May Raise Interest Rates More Than Three Times

PGIM Chief US Economist Robert Sorkin stated that the signals from the latest Federal Reserve meeting indicate that with just a slight push, the Fed could implement three interest rate hikes, or even take more aggressive action if necessary. This rate hike is a hawkish one, as the Fed has indicated the possibility of another rate increase this year. Among the 18 Federal Reserve officials who submitted forecasts, eight expect a total of three rate hikes throughout this tightening cycle by the end of 2027. In a report, Sorkin noted that Federal Reserve Chair Walsh mentioned the Fed had "rolled back some of its accommodative measures," suggesting that he and other participants see Wednesday's move as only a small step in tightening financial conditions, indicating that further actions may follow. Sorkin added that if inflation remains high, the risk of further Fed rate hikes remains elevated.