The Odds of a Rate Hike Are Soaring Ahead of the Sept. 16 FOMC Meeting
Fed Chair Kevin Warsh’s Jackson Hole speech and the August jobs report have tipped the scales decisively in favor of a rate hike.
Overview
With more than eight months in the books, it's shaping up as another phenomenal year for investors. The Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have managed to shake off several headwinds to rally 11%, 13%, and 14% this year, through the Labor Day weekend.
But the stock market's streak of fending off negative catalysts may soon come to an end. Persistently elevated inflation is a serious problem, and the odds of the Federal Reserve hiking interest rates at the upcoming Federal Open Market Committee (FOMC) meeting on Sept. 16 are rapidly climbing.
Fed Chair Kevin Warsh has vowed to deliver price stability. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.