Moody's chief economist says Fed should hold rates as risks mount
Mark Zandi of Moody's Analytics says the Fed should not raise rates at this week's meeting. He sees a growing list of economic risks, with a Fed misstep among them.
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what happened
Mark Zandi, chief economist at Moody's Analytics, told Market Talk that the Federal Reserve will not raise rates again at its meeting this week, and that it should not. He warns that the economy faces a growing list of threats, and that a policy misstep by the Fed is one of them.
Zandi says this view comes from Moody's risk matrix. The matrix rates each risk by its likelihood over the next 12 to 18 months and by the economic damage it would cause. He says the matrix shows a lot of red, meaning risks are becoming either more likely or more severe.
why it matters
For markets, this matters because expectations for the path of rates drive Treasury yields and the dollar. If the Fed holds steady, that could support demand for longer-dated bonds, but rising risks add uncertainty for equities and credit.
market impact
US Treasuries and the dollar: expectations of a Fed pause and rising risks shift rate expectations
tags
instruments
sources
- Fed Should Hold Rates Steady as Risk Warnings Grow — Market Talk, 27 October 2026 at 03:14 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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