Market Awaits Fed Minutes For Signs About Rate Hike

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.

Written By:

Johnathan Schweitzer





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