Jeffries expects the Federal Reserve to raise interest rates this week, and Waller's comments are key

Jefferies global economist Mohit Kumar stated in a report that the Federal Reserve is expected to raise interest rates this week and believes that Waller's comments are crucial. He said, "We expect the Federal Reserve to raise interest rates, but Waller's comments on the future direction of policy will be key."

Regarding further rate hikes, Jefferies believes that the actual actions of the Federal Reserve will be fewer than the 3.5 rate hikes anticipated by the forward market. Kumar said, "From a credibility standpoint, the first rate hike may be necessary, but subsequent hikes will depend on how long the war lasts and the trend of oil prices."