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.”
