Seema Shah sees more than one Fed hike after five years of above-target inflation

  • Seema Shah expects the Federal Reserve to raise interest rates next week.
  • Shah says inflation has remained above target for five consecutive years.
  • Shah expects the Federal Reserve to deliver more than one hike this cycle.

Seema Shah, chief global strategist at U.S. asset manager Principal Asset Management, says a Federal Reserve rate hike next week is effectively certain. She expects the central bank to raise rates more than once in this cycle, arguing that the debate has moved from whether another increase will occur to how many are ultimately needed. Shah points to inflation remaining above target for five consecutive years and says policymakers may determine that multiple hikes are necessary to restore price stability.

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