Fed Gives Subtle Signal Of December Rate Hike
All the Fed needs to raise rates in December is “some” further evidence that inflation and employment are on the right track.
That’s according to the official statement released following its Nov. 2 meeting during which the Fed opted to hold rates steady this month, a move largely expected by investors, Bloomberg reports. Yet the word “some” looks like a subtle nod the Fed is giving to a hike come December, especially since inflation and employment data are expected to keep strengthening.
The only thing that could likely derail a December increase in short-term interest rates, according to BMO Nesbitt Burns senior economist Jennifer Lee, is mayhem on Nov. 8. Markets were spooked when Donald Trump pulled ahead of Hillary Clinton on Tuesday, falling to their lowest levels since July, illustrating just how much markets could be impacted by the presidential election. [Bloomberg]