Santander raised its forecast for Federal Reserve rate hikes, now expecting 25 basis point increases in December and March of next year.

Stephen Stanley, chief U.S. economist at Santander, raised his forecast for Federal Reserve rate hikes, predicting 25 basis point increases in December and March of next year. Stephen Stanley believes the economy is strong, inflationary pressures are widening, and the Federal Reserve's assessment of its neutral policy stance has improved. He expects the Fed to maintain its pace of acting at every other meeting, and a fourth rate hike could occur in June if the economy shows signs of overheating or core inflation remains above 3%.