Santander Reiterates Rate Hike Forecast Amid Inflation Debate

Santander, a major financial institution, has reaffirmed its expectation of Federal Reserve interest rate hikes in September and December.

The bank's forecast remains unchanged despite recent inflation data, which showed a slight uptick in headline inflation to 3.2% year-over-year in July.

Santander argues that the central bank will prioritize quelling inflation over economic indicators pointing to a slowdown.

According to the bank, the Fed will likely raise interest rates again in December, bringing the federal funds rate to a range of 5.75%, 6.00%