[BNP: The Federal Reserve is unlikely to repeat the 2022-2023 interest rate hike cycle] September 28th, Chi Lo, a strategist at BNP Paribas, said that although the market expects two more interest rate hikes, the Fed's September interest rate hike is unlikely to be the beginning of a new tightening cycle similar to 2022 to 2023. Instead, it could mark the start of a "precautionary rate hike" aimed at bringing inflation back to target by reversing last year's three rate cuts. He said further interest rate increases would not resolve external shocks such as war and energy price inflation, but would ease financial market concerns about the Fed's credibility in fighting inflation. The Fed cannot continue to turn a blind eye to shocks that reoccur or fail to subside as expected. However, by curbing inflationary pressures by slowing activity in other parts of the economy, further rate hikes could also carry the risk of pushing the economy into stagflation.