• 3 hours Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 6 hours Disney Beats Out Comcast In $71.3B Mega-Merger
  • 9 hours The Feds Continue To Prop Up Equities Markets
  • 11 hours Bejing's Sway In South China Sea Is Fading
  • 1 day Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 1 day Airbnb In Acquisition Mode Ahead Of IPO
  • 1 day Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 1 day Champagne Sales Slow As European Economic Worries Grow Louder
  • 2 days Putin Signs “Digital Iron Curtain” Into Law
  • 2 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 2 days Tesla Looks To Jump Into Indian Market
  • 2 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 3 days Homeowners Experiment With Risky New Investment Trend
  • 3 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 3 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 3 days Ford CEO Gets Raise After Massive Layoff Round
  • 4 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 4 days Where To Look As Gold Miners Inch Higher
  • 5 days Google Faces Billions In Fines From European Regulators
  • 5 days The Energy Industry Has A Millennial Problem
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

  1. Home
  2. Markets
  3. Other

Fed Talks of Strengthening Economy, But Didn't Hike: Why? Door Open for September?

In today's FOMC Statement the Fed says the labor market has strengthened, household spending is growing strongly, and economic activity is expanding at a moderate rate.

Supposedly, "near-term risks to the economic outlook have diminished".

But "against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation."


Stop Talking and Do It

Esther L. George, president of the Federal Reserve Bank of Kansas City dissented. She preferred to raise the target range for the federal funds rate to 1/2 to 3/4 percent today.

Esther L. George Dissents at Fed Meeting


Door Open for September?

The Wall Street Journal reports Fed Leaves Door Open to Move as Soon as September.


Fed Fund Futures for September

Fed Fund Futures for September


Fed Fund Futures for December

Fed Fund Futures for December


Why Didn't the Fed Hike Today?

That's easy. This Fed refuses to surprise the market. If the market doesn't believe the Fed will hike, the Fed is highly unlikely to hike.

The door for September hikes is open only if the market agrees.

 

Back to homepage

Leave a comment

Leave a comment