Barclays Anticipates Fed Rate Hike in January Instead of December, Reports Reuters

Barclays has revised its forecast, now anticipating a 25 basis point interest rate increase from the U.S. Federal Reserve in January, rather than the previously expected hike in December. The shift in prediction comes in light of weaker-than-expected employment data for October and a more dovish stance expressed by the Fed.

Recent employment reports indicate that the unemployment rate rose to 3.9% in October, marking the highest level since January 2022, up from 3.8% in September. Barclays economists noted in a report dated November 3 that they believe the Federal Open Market Committee (FOMC) will need to implement further tightening measures and maintain a higher interest rate trajectory than what the market anticipates, with no rate cuts expected before September 2024.