Former Dallas Federal Reserve Bank President Robert Kaplan pointed out that financial markets' expectations for an interest rate hike by the U.S. Federal Reserve (Fed) are excessively high. He stated that the September rate hike was appropriate, and a further hike in December could also be a reasonable choice, but freezing rates in October would be desirable. Kaplan explained that while the Fed's dot plot suggests one more rate hike this year, the market is pricing in at least three more hikes by June next year. Although inflation remains a concerning level, he assessed that interest-sensitive economic sectors, such as the auto, housing, and industries targeting low-to-middle-income households, have not overheated.
