Fed needs a 25-basis-point rate hike in September to restore credibility: Ed Yardeni
CNBC-TV18 1 hr ago·31 Aug 2026, 3:57 am
Economist Ed Yardeni suggests the US Federal Reserve should raise interest rates by 25 basis points in September. This move is intended to help the central bank regain its credibility after recent economic data has been mixed. Yardeni argues that while headline GDP numbers may appear weak, the underlying strength in the US economy is actually quite robust.
This perspective is significant for investors because it counters the fear of a 'stagflation' scenario, where the economy slows down while inflation remains high. Yardeni points to strong consumer spending and business investment as evidence that domestic demand is holding up. This implies that the US economy is more resilient than the headline numbers suggest.
Investors should watch the upcoming Federal Reserve meeting minutes and economic data releases closely. If the Fed signals a willingness to stick to its tightening path, it could support the US dollar and bond yields. Conversely, if the data shows a clear slowdown, the market may adjust its expectations for future rate cuts.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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