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Fitch Expects Fed Rate at 4.25% Through 2027

By Drooid · Oct 31, 2026 · How we work

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Fitch expects the Federal Reserve to raise its policy rate to 4.25% in December and keep it through 2027.
Fitch says the U.S. credit outlook remains broadly benign despite tighter funding conditions.
CCC-rated bond yields have widened roughly 480 basis points since the start of the year.
Private-credit defaults hit a record 6.3% in the 12 months through September 2026.

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Fitch expects the Federal Reserve to raise its policy rate to 4.25% in December and keep it through 2027.
Fitch says the U.S. credit outlook remains broadly benign despite tighter funding conditions.
CCC-rated bond yields have widened roughly 480 basis points since the start of the year.
Private-credit defaults hit a record 6.3% in the 12 months through September 2026.