BNP Paribas: The Federal Reserve is unlikely to repeat the 2022-2023 rate hike cycle.

BNP Paribas strategist Chi Lo said that although the market expects two more rate hikes, a September Fed rate hike is unlikely to mark the start of a new tightening cycle similar to 2022-2023. Instead, it may mark the beginning of "preventive rate hikes," aimed at pulling inflation back to target by reversing last year's three rate cuts. He said further rate hikes will not resolve external shocks such as war and energy price inflation, but will ease financial market concerns about the Fed's anti-inflation credibility.