As we wrote this morning, the November FOMC meeting minutes are essentially moot at this point. Against the backdrop of a flurry of Committee members’ comments – including the Chairman herself – suggesting a rate rise was imminent, the market is now pricing in a December hike with 100% certainty.
Buffy may have her way on slaying vampires, but she has nothing on Fed Chair Janet Yellen when it comes to killing commodities. Yellen’s testimony to Congress basically assured us that the Federal Open Market committee will raise rates in December as the economy is making significant progress.
Risk appetite remains strong at the start of the new week, aided by a softening in tone of some of the more controversial campaign promises as Donald Trump, the candidate, continues to morph into President-elect Donald Trump.
Dollar bullish investors stole the show during trading on Monday with the Dollar Index surging to 11-month highs at 100.00 as expectations intensified during the Federal Reserve raising U.S. interest rates in December.
A senior economic adviser to President-elect Donald Trump stressed economic growth over discussion of Federal Reserve policies on Thursday, citing the need for small-business job growth through better regulation, energy policy and tax cuts.
The U.S. economy will remain in a low interest rate "regime" for perhaps two to three more years, St. Louis Federal Reserve President James Bullard said on Thursday, repeating his call that a single interest rate increase would be adequate for the foreseeable future.
U.S. interest rates futures on Wednesday pared their initial gains linked to Donald Trump's surprise victory for the U.S. presidency, suggesting traders think the Federal Reserve may still raise interest rates at its Dec. 13-14 policy meeting.
The Federal Reserve kept interest rates unchanged on Wednesday in its last policy decision before the U.S. election, but signaled it could hike in December as the economy gathers momentum and inflation picks up.
Against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2%. The Committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives.