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Major Players Are Convinced The Fed Will Defer Action Until Later In The Year


PIMCO, BlackRock and JP Morgan Asset Management are in agreement: the Federal Reserve is likely to defer any interest rate movement to December.

Odds of an end-of-the-year move in the market jumped above 50% Friday after the US reported consumer prices in August rose by 0.2%—more than analysts projected. The market is also taking into account policymakers’ recent rhetoric in favor of a rate hike, Bloomberg reports. If central bankers choose to proceed, this will be the second hike since interest rates were cut close to 0% following the Great Recession in 2008.

Central bankers overseas are meeting to brainstorm their own stimulus, some even contemplating rather unconventional policies. The Bank of Japan meets Sept. 20 through Sept. 21 (just like US policymakers), and the European Central Bank will be looking into its own stimulus plans during its meeting next month. [Bloomberg]