Fed Rate Hike in September not a Done Deal Despite Market Pricing
Dow Jones
1 hour ago
0519 GMT - Money markets' high expectations of an interest-rate hike at the Federal Reserve's September meeting might be excessive, according to Nomura Asset Management International, which continues to expect the Fed to hold rates this month. Fed Chairman Kevin Warsh's positive assessment of task force check-ins could make the October or December meetings "live" for potential action, however, says Greg Gizzi, head of fixed income and municipal bonds. "The probability of a hike at one of those meetings has certainly increased, though any move remains contingent on incoming data," he says. Money markets currently price in 65% probability of a rate hike at the Sept. 16 meeting, according to LSEG.
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