Fed Should Raise Rates Amid Strong Economic Indicators, Analyst Says

Crypto analyst Benjamin Cowen believes the Federal Reserve should raise interest rates at its September 16 decision, citing a combination of economic factors.

The August jobs report pushed rate hike odds back to 60%, according to Cowen, who argues that this uncertainty is unusual given how quickly market expectations typically settle in the two weeks leading up to a Fed decision.

Cowen points to four key indicators: GDP tracking at 4.7% for Q3, inflation still running at 3.3-3.4%, a resilient labor market, and oil prices near $90 a barrel, all of which contribute to his case for a rate hike.

If the Fed does not raise rates, Cowen warns that the bond market will likely interpret this as a mistake, leading to higher long-end yields.