Fahad Hassan: When good news becomes an inflation problem

For much of this year, investors have been waiting for interest rates to come down. Stronger earnings and a resilient economy seemed to offer the best of both worlds: growth without an obvious need for further tightening. The Federal Reserve's decision on 16 September has changed that calculation. The Fed raised rates by 25 basis points to 3.75–4.00% in a unanimous decision and the first increase since 2023. The vote was unanimous, despite political pressure ahead of the midterms. Its projections have prompted markets to reassess the outlook: twelve of eighteen participants expect ...