Citadel Securities expects the Fed to raise rates this week; a Wednesday 25bp hike would bolster Chair Kevin Wash’s credibility in the inflation fight, the firm’s head of macro strategy Frank Flet wrote. The move would signal policymakers no longer rely on pre-signaling every action, could “decisively end the era of forward guidance,” and underscores Fed independence. “Markets may again underestimate the extent of the Fed’s hawkish shift.”

2026-07-28

Citadel Securities expects the Fed to raise rates this week; a Wednesday 25bp hike would bolster Chair Kevin Wash’s credibility in the inflation fight, the firm’s head of macro strategy Frank Flet wrote. The move would signal policymakers no longer rely on pre-signaling every action, could “decisively end the era of forward guidance,” and underscores Fed independence. “Markets may again underestimate the extent of the Fed’s hawkish shift.”