Recent FOMC projections and the September 2026 rate hike to the 3.75-4.00% target range have anchored trader expectations for the federal funds rate at year-end 2026. The median dot plot now points to 4.1%, reflecting one additional 25 basis point increase amid upward revisions to growth, core PCE inflation, and a lower unemployment path. Persistent inflation above target and resilient economic data have shifted the policy outlook hawkish, with futures pricing a high probability of further tightening before December. This consensus supports the leading market outcomes clustered at 4.25% and above, while lower-rate scenarios remain discounted given limited evidence of rapid disinflation. Upcoming October and December meetings remain key catalysts that could adjust the terminal rate path.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedView resolved

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