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Charlie Bilello, chief market strategist at Creative Planning, reports that markets have dramatically shifted their outlook on U.S. Federal Reserve policy since the start of 2026. At the beginning of the year, investors anticipated two rate cuts, but after a 25 basis point hike last week, markets are now pricing in at least one more increase before year-end.
Bilello also notes that U.S. President Donald Trump sought a more dovish approach and lower interest rates, but ultimately appointed a more hawkish official.
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Earlier this year, Charlie Bilello discussed President Trump’s call for sharp U.S. GDP growth and cautioned that excessive stimulus could increase inflation. Bilello has also reported that U.S. producer prices rose 5.4 percent over the last year. These developments come as investors adjust expectations around future Fed policy changes.