A September Rate Hike Is On The Table
Despite the market assigning a moderate 35% chance of a rate hike at yesterday's FOMC meeting, the Fed left rates unchanged. However, three dissenting voters (Hammack, Kashkari, and Logan) wanted a rate hike. The Fed Funds futures market is now pricing in near 80% odds of a September hike. The question is whether 3 to 4 additional voters will join their camp and push for a hike in September. Warsh has made it clear he is in favor of providing less forward guidance. That was made apparent with the shortened FOMC statement that was 166 words, about a third of the size of the statement following…
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