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Prepare For A Rate Hike In December
Most experts agree the Fed won’t raise rates at its Wednesday meeting—but still say we will see that rate hike in December.
The central bank appears increasingly confident to raise rates, with Fed Chair Janet Yellen saying in September that a move before year-end is likely if employment and inflation data continue to strengthen, Reuters reports. And strengthen they have—job gains have plateaued as the workforce nears full capacity and consumer spending continues to creep up.
The biggest reason the Fed is unlikely to hike rates this week is the presidential election, with JP Morgan economist and former Fed staffer Michael Feroli saying it's widely understood that raising rates at this time would be politically treacherous. [Reuters]
