RABOBANK analyst Jane Foley said the Fed may seek to dampen rate‑hike expectations in its upcoming policy decision. The bank still forecasts a 25bp hike but warns the Fed risks undermining market confidence in further tightening because markets have

2026-09-16

RABOBANK analyst Jane Foley said the Fed may seek to dampen rate‑hike expectations in its upcoming policy decision. The bank still forecasts a 25bp hike but warns the Fed risks undermining market confidence in further tightening because markets have over‑priced policy tightening for next year. Foley said the dollar could weaken in the near term, but a large sell‑off is unlikely given external vulnerabilities elsewhere — notably limited UK fiscal space and the euro area’s status as an energy importer. RABOBANK sees EUR/USD trading around 1.16 over the next 1–3 months.