Citadel Securities Sees Risk of Fed Starting Hiking in September

Citadel Securities says the odds are rising that the Federal Reserve could begin a series of interest-rate hikes as soon as September, citing more persistent and broad-based inflation. The message is hawkish and implies higher yields and tighter financial conditions, which could pressure risk assets broadly if pricing shifts toward an earlier tightening cycle.

Analysis

Citadel Securities says the odds are rising that the Federal Reserve could begin a series of interest-rate hikes as soon as September, citing more persistent and broad-based inflation. The message is hawkish and implies higher yields and tighter financial conditions, which could pressure risk assets broadly if pricing shifts toward an earlier tightening cycle.