I posted a little earlier that the latest Wall Street Journal Poll says Fed will hike in September
The market is not nearly as confident, though. More from the Journal:
- Federal-funds futures, which price off overnight interest-rate expectations, imply the chances of a rate increase by September are less than 50% and price in just one increase in the target range.
The article goes on to say the "Federal Reserve wants to avoid sparking another taper tantrum. That will be easier said than done." It cites the Treasury sell off that happened around the time former Fed chair Bernanke tapered QE.
The article is gated, but worth a quick read if you can access it: Fed Rate Move Will Make Doves Cry
The market isn't prepared for a September rate increase, and the Federal Reserve will have a hard time changing that.
