U.S. stock indexes edged slightly lower on Wednesday but have bounced off today’s lows ahead of the release of the Fed’s minutes from their July 26-27th Fed meeting.
The Fed minutes will be released at 2:00 p.m. ET.
The U.S. dollar snapped a 3 day decline and moved higher on Wednesday against a basket of currencies, boosted by comments on Tuesday from New York Fed President William Dudley who said on Fox Business that an interest rate hike in September is a possibility.
“The economy is in O.K. shape” Dudley said while pointing out decent U.S. job growth.
The federal funds rate with the Federal Reserve is currently set at 0.25-0.50 percent.
Fed watchers are eyeing possible interest rate increases at Fed meetings in September and/or December.
According to CME Group’s Fed Watcher tool, currently there is a 82 percent probability the federal funds rate will stay at the 0.25-0.50 percent range on September 21st, slightly lower from 85 percent on Tuesday.
The Fed Watcher tool for December 14th shows there is a 45.8 percent current probability the federal funds will stay at the 0.25-0.50 percent range, slightly lower than 47.5 percent on Tuesday.
The Fed Watcher tool for December 14th shows a 45.5 percent probability target in the 0.50 percent- 0.75 percent range, slightly higher than the 45.1 percent on Tuesday.