As the Federal Reserve heads into its July 28-29 policy meeting under renewed inflationary pressure, Derivative Path CEO Pradeep Bhatia offered a ground-level view of how financial institutions are navigating the uncertainty.
Bloomberg quoted Pradeep directly in the July 26 article, “Fed Faces Growing Pressure to Hike Rates as Price Risks Rebound“:
“Roughly one third of the banks we work with are positioning for further rate increases, while the rest are hedging against cuts. That kind of bifurcation tells you the market has stopped trying to predict the Fed and started preparing for both outcomes.”
The article examines how renewed Middle East tensions, AI-driven demand, and fresh tariff announcements have sent rate hike odds back toward 40%, reversing a brief pullback following a tamer-than-expected June CPI reading. With Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack both signaling openness to higher rates, the committee appears more divided heading into this meeting than any in recent memory.
The full article is available at Bloomberg.com. As it is behind a paywall, feel free to email [email protected] to request a copy.