BlerinaUruci Markets underestimate the possibility of Fed tightening policy

Blerina Uruci, chief U.S. economist at T. Rowe Price, said markets may still underestimate the possibility of the Fed tightening further. She pointed out that since early May, the conflict in Iran has lasted longer than expected, oil prices have risen, and U.S. economic growth has remained resilient. Uruci believes that the probability that the federal funds rate will remain unchanged in the next 12 months is 45%, the probability of a rate hike by the end of the year or early 2027 is 35%, and the probability of a rate cut is 20%.