Will The Fed Raise Rates? The Countdown Begins....
Let the countdown begin. The Fed’s decision on rates is Dec 16. As it stands now, traders in federal funds rate futures contracts are pricing a 75% chance the Fed will raise the fed funds rate come Dec. 16. That's the highest odds given for 2015.
Confidence in a rate hike was further bolstered by Federal Reserve Bank of Atlanta President Dennis Lockhart saying he favors raising the fed funds rate this month. “Absent information that drastically changes the economic picture and outlook, I feel the case for liftoff is compelling,” Lockhart said.
The rate hike’s final obstacle is November's employment numbers. If November saw 200,000 or more new jobs created, we'd expect to see the odds of a rate increase rise above 80%. We expect to see 200,000 or more new jobs for November.
What this means, is that the rates we have today might be the best rates we see for a while.
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