The Royal Bank of Canada Capital Market has postponed the expected schedule for the Fed's interest rate hike cycle, predicting that the Federal Reserve will raise interest rates every other time during the December and March interest rate meetings, rather than the previously anticipated continuous rate hikes in October and December. Strategists Blake Gwen and Izak Brook pointed out in a report on Friday that the current terminal interest rate pricing is still above the reasonable valuation range of 2 to 2.8 interest rate hikes. The strategists said that the statement made by members of the Federal Reserve's Open Market Committee this week appears to be to “inject more flexibility into market pricing and resist the hawkish narrative that has heated up rapidly before.” They pointed out that although personal consumption spending and employment data did not signal an “obvious dovish warning,” they did not bring a “sense of urgency” to the Federal Reserve's interest rate hike.

The Royal Bank of Canada Capital Market has postponed the expected schedule for the Fed's interest rate hike cycle, predicting that the Federal Reserve will raise interest rates every other time during the December and March interest rate meetings, rather than the previously anticipated continuous rate hikes in October and December. Strategists Blake Gwen and Izak Brook pointed out in a report on Friday that the current terminal interest rate pricing is still above the reasonable valuation range of 2 to 2.8 interest rate hikes. The strategists said that the statement made by members of the Federal Reserve's Open Market Committee this week appears to be to “inject more flexibility into market pricing and resist the hawkish narrative that has heated up rapidly before.” They pointed out that although personal consumption spending and employment data did not signal an “obvious dovish warning,” they did not bring a “sense of urgency” to the Federal Reserve's interest rate hike.