TRADING NEWS TERMINALReal-Time Market Intelligence
Trading News Terminal is a real-time market-intelligence app for active traders.
Wire-grade headlines, AI-classified impact, live squawk, economic calendar and TradingView charts — in one distraction-free terminal.
Start free →
High Impact

THE FED IS EXPECTED TO HOLD RATES STEADY THIS WEEK, WITH PRINCIPAL ASSET MANAGEMENT’S SEEMA SHAH EXPECTING A RATE HIKE IN DECEMBER AND ANOTHER IN 2027 AMID ENERGY-DRIVEN INFLATION. MEANWHILE, BRAZILIAN MARKETS SLUMPED FOLLOWING LULA DA SILVA’S RE-ELECTION, AS INVESTORS WORRIED ABOUT FISCAL RISKS, WHILE BRENT CRUDE SETTLED NEAR $116 A BARREL.

📅
🏷Markets
📰via FS
✍️Edited by Luís Barata

The Federal Reserve is widely expected to keep its policy rate unchanged this week, while Principal Asset Management's Seema Shah projects a rate hike in December and another in 2027 as energy-driven inflation reaccelerates. The mechanism at work is inflation repricing: higher oil prices feed into headline CPI and inflation expectations, pushing market-implied policy paths upward and lifting real yields and the dollar relative to peers. Short-duration Treasuries and rate-sensitive growth equities are most exposed to a hawkish repricing, while energy-linked assets such as Brent crude benefit from the supply-side pressure behind the inflation impulse. The headline also flags a slump in Brazilian markets, where weaker risk appetite and tighter global dollar liquidity typically pressure the real and local-currency assets, with domestic political developments around President Lula adding a country-specific risk premium. Traders should watch the next US CPI release and the Fed's updated dot plot for confirmation of whether the energy shock is broadening into core inflation.

Source: Originally reported by FS at October 26, 2026. Summary and market context by Trading News Terminal editorial.

About BRENT

Brent crude is the international oil benchmark, priced in the North Sea. Unlike WTI it reflects global supply/demand — Middle East geopolitics, OPEC+ cuts, Russian export sanctions, and Asian refinery demand all drive Brent intraday.

Why this matters for traders

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

How active traders react to headlines like this

Active traders typically follow a three-step workflow when a market-moving headline hits the wire: (1) read the headline on the terminal or hear it on the squawk box; (2) assess whether the news is already priced in (by checking intraday price action in the seconds before) or whether it's genuinely new information; (3) act — either entering a breakout position, fading an overreaction, or tightening stops on existing trades. Trading News Terminal's Pro plan delivers wire-grade headlines within seconds of the source, with automatic audio squawk on every HIGH-impact event, so the read-assess-act cycle never waits on a refresh button.

Track this story live on TNT

Curated set of live tools relevant to this headline. Updated continuously from primary sources.

Related stories