Bonds Making It Clear the Fed Needs to Hike, Morgan Stanley’s Hornbach Says

Matt Hornbach, global head of macro strategy at Morgan Stanley, expects the Federal Reserve to implement a 25 basis-point rate hike during the September FOMC meeting. While a single hike remains possible, current market pricing suggests otherwise. This projection aligns with 85% of economists and 87-90% of futures markets. Hornbach indicates that bond market signals make it clear that the Fed needs to hike rates, reinforcing the expectation for the upcoming September 15-16 session.