Economy · From the edition of Jul 18, 2026
✳ Dated WEDNESDAY, DECEMBER 9, 2026 ✳
POWELL HIKES: THE FED TURNS HAWKISH
as traders abandon the cut and brace for a costlier winter
WASHINGTON, Dec. 9 — The Federal Reserve raised interest rates before year's end — an outcome traders had priced at 54 per cent, a coin-flip that finally landed hawkish. Markets that spent months betting on relief bet, instead, on the brake.
The turn is stark. For most of 2026 the consensus called for Powell to ease. Sticky inflation and a stubborn labor market flipped the script, and the wires now read the chairman as the last hawk standing.
The stakes reach past the trading desk. Higher rates mean pricier mortgages, tighter credit and a leaner holiday for borrowers. Observers say the message is plain: the fight over prices is not finished.
Source: Polymarket · 54% probability — View market ↗