Are You Prepared for the US to Raise Interest Rates in December?

17.11.2016 • Central Banks

From Kris Sayce – Port Phillip Insider (Australia) –

  • Batten down the hatches
  • Forget global warming, here comes global cooling
  • Something big is coming

Certainty reigns.

According to the latest numbers provided by Bloomberg, there is a 94% chance the US Federal Reserve will raise interest rates in December.

It’s the most certain we’ve seen the markets in a long while on the question of interest rates.

If the Fed really has been gagging to raise rates, it’s never had a better time to do so. Given the near certainty, we should be able to assume that the market has fully priced a rate rise into all asset prices — including stocks and bonds.

So, it’s a done deal, right?

As it stands now, yes, that appears to be so. But then again, the Fed’s next meeting isn’t until 14 December. That’s a heck of a long time.

Anything could happen between now and then. And even at that point, the US will still be more than a month away from the inauguration of its 45th president, Donald J Trump.

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