Fed's Signals Seen as 'Somewhat Ambiguous' -- Market Talk

0511 GMT - The Federal Reserve's current signals are somewhat ambiguous, Mediolanum International Funds' Daniel Loughney says in a note. The market has interpreted Chairman Kevin Warsh's comments as hawkish at his first FOMC meeting and moved from pricing in rate cuts to rate hikes, the head of fixed income says. Currently, the market prices a 31.5% probability of a hike later Wednesday and expects the Fed to raise rates by slightly more than 50 bps over the next 12 months, according to LSEG data. "We believe that the market's interpretation of Fed intentions is wrong and rate increases are not merited," he says. Mediolanum viewed Warsh as neither hawkish nor dovish at the last meeting, Loughney adds. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 01:11 ET (05:11 GMT)