Possible scenario
Hawkish Path Holds
45% Chance
The most likely outcome is that investors treat the 16-of-18 Fed projection as confirmation that policy will stay restrictive into year-end. Because the September hike and hawkish dot plot were already signaled, the market reaction is meaningful but not a crisis-level repricing.
Initial impacts
- 10-year Treasury yield Up
- Riskier companies' borrowing costs Up
- Market volatility Up
- US dollar Up
Secondary impacts
- Utilities -1.3%
- Technology -1.0%
Portfolio impact
S&P 500-0.8%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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