Federal Reserve Is Expected to Raise Its Benchmark Rate, Defying Trump’s Demands
Traders see a quarter-point increase this Wednesday as August consumer inflation held at 3.4% and core prices also picked up, according to the Bureau of Labor Statistics.
- The Federal Reserve is widely expected to lift its short-term interest rate this Wednesday for the first time in three years, with traders seeing a 90% chance of a quarter-point hike to combat stubbornly high inflation.
- After the Bureau of Labor Statistics confirmed August consumer inflation reached 3.4% on Friday, economists argue Fed Chair Kevin Warsh must increase rates or risk undermining his credibility with financial markets.
- The potential hike comes seven weeks before midterm elections, placing the central bank at odds with President Donald Trump's support for a cut, though economic adviser Kevin Hassett stated Trump "100% respects" Warsh's independence.
- With the Iran war flaring up and driving sharp increases in oil and gas prices, inflation is likely to remain above the Fed's 2% target, prompting traders to forecast three total interest rate hikes.
- Longer-Term interest rates on 10-year and 30-year Treasury bonds could spike if the Fed fails to act, while stocks remain priced as if the FOMC would not impose growth-impeding hikes so soon.
14 Articles
14 Articles
Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands – WTOP News
WASHINGTON (AP) — The Federal Reserve is widely expected to lift its short-term interest rate Wednesday for the first time in three years to fight stubbornly high inflation, a move that would put the central bank at odds with President Donald Trump’s support for a cut. An increase in the Fed’s rate, currently about 3.6%,...
The Toronto Star
Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands
WASHINGTON (AP) — The Federal Reserve is widely expected to lift its short-term interest rate Wednesday for the first time in three years to fight stubbornly high inflation, a move that would put the central bank at odds with President…
The Chances of a Federal Reserve Rate Hike Are Surging. Here's What It Means for the Stock Market.
Key PointsFor far too long, inflation has lingered above levels the Federal Reserve considers palatable.As a means of tamping down this unchecked price growth, higher interest rates are on the (very) near-term horizon.These higher interest rates, however, also work against the stock market by stifling profitable growth. These 10 stocks could mint the next wave of millionaires › Interest rates in some parts of the economy were already rising in a…
Stock markets continue to fall in Asian time zones and the Swedish krona weakens further while US interest rates hit record highs. The US central bank is expected to raise interest rates tomorrow. Swedish assets abroad increased by 7.5% last year.
A rate hike from the Federal Reserve on Wednesday could be the beginning of a decline for the US stock market, warns the research firm Macro Risk Advisors.
Chief strategist believes key factor is staggered interest rate drama. – A perfect example.
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