There's Now an 82% Chance of a Fed Rate Hike by mid-September -- Here's Why
The Federal Open Market Committee's interest rate decision is about far more than just energy prices.
Overview
It's been another stellar year for the timeless Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth-driven Nasdaq Composite (NASDAQINDEX: ^IXIC), which have hit all-time highs since early June. But the party may be nearing a conclusion, based on the latest interest rate projections.
According to the CME Group's FedWatch Tool, which uses 30-day Fed funds futures prices to track the probability of Federal Reserve rate hikes at upcoming Federal Open Market Committee (FOMC) meetings, there's now an 82.4% chance of an FOMC rate hike by the Sept. 16 meeting. That's up from a 52.4% probability of higher interest rates by mid-September, as of July 16.
Details
This sudden surge in Fed rate-hike probability boils down to three factors.
Source
Originally published at www.fool.com.