Interest Rates - In Case You Missed It!

September 22, 2016 8:27AM 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?

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