Take Two: Fed signals further rate increase; US stocks hit record high - BNP Paribas Asset Management

US interest rates are likely to increase again before the end of 2026, the minutes of the Federal Reserve’s latest meeting showed. All members of the rate-setting committee voted in favour of a 25 basis-point rate hike to 3.75%-4.0% in September, and “most” felt that another hike “would likely be appropriate by year end”. They agreed that inflation risks were “skewed to the upside” – more likely to rise than to fall – though the unemployment rate is expected to remain stable, and economic activity was expanding at a solid pace. Wall Street profits hit $45.9 billion in the first half of this year, up 51% from the same period last year, according to a report from the New York State Comptroller, the state’s financial watchdog.