U.S. Fed's September Rate Decision Seen as 'Coin Toss'

Dow Jones
09/08

0548 GMT - The Federal Reserve's interest-rate decision on Sept. 16 "will come down to something of a coin toss as Fed officials balance the outlook between persistent price pressures (inflation) and making policy restrictive," First Abu Dhabi Bank's Simon Ballard says in a note. Market pricing underpins this view as money markets currently price in a 58% probability of a 25-basis-point hike against a 42% chance of unchanged rates, according to LSEG. The chief economist adds that "there will also be the 'not insignificant' matter of [U.S. President] Trump and [Vice President JD] Vance continuing to protest the case for rates to be cut."

 

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