Why the small chance of a Fed interest-rate hike could burn investors, says rates analyst

The Tell

Investors face risks from a possible Federal Reserve rate hike, as well as sharp cuts, in the months ahead, says Columbia Threadneedle analyst

Published: June 24, 2025 at 5:23 p.m. ET

Investors could get burned over the next year if the Federal Reserve needs to hike interest rates to keep a lid on inflation, according to Edward Al-Hussainy, a senior rates and currency analyst at Columbia Threadneedle Investments.

Al-Hussainy put the odds of rate increases at only about 15% during a press briefing Tuesday — but said there’s “a world out there” where in 12 months from now the Fed is raising rates.