Interest Rates - In Case You Missed It!

September 22, 2016 1:27PM CDT

Interest rates have been on hold since December 2015. After yesterday’s FOMC meeting, the Federal Funds target range remains at  0.25-0.50 %. In this past weeks statement, there was commentary that the labor market had continued to strengthen while the pace of economic activity had increased slightly. These results “balanced each other out” to the FOMC, negating any imminent near term risks to the economic environment.

Even though this decision prevailed, three members of the committee dissented. Those calling for a rate increase NOW were Kansas City Fed President George, Boston Fed President Rosengren, and Cleveland head Mester. They felt the case for a rate increase had strengthened, but agreed to closely monitor inflation indicators as well as global financial developments in the near term.

Fourteen of the seventeen FOMC members felt there will be at least one rate increase before the end of this year—most likely in December…(The November FOMC meeting is just a few days before the Presidential election and an unlikely time to raise rates!) So what do YOU think will happen?

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.