All eyes will be on the September Federal Open Market Committee (FOMC) meeting. Unless there is extraordinary news, like collapsing crude oil prices, I am fully expecting a key Fed interest rate hike.
The Fed never fights market rates. Since market rates have risen globally due to higher energy prices, and after the ECB hike, more central banks are expected to follow and raise key interest rates.
The big news is expected to be the FOMC statement that may signal whether or not the Fed is "one and done" or signal that more key interest rate hikes will be forthcoming. Under new Fed Chairman Warsh, the Fed may not provide good guidance, since Warsh wants Wall Street to take its cue from market rates.
Related: Louis Navellier is buying 3 headline-making stocks, including Google
The good news is that with a hike already baked into the cake, there shouldn't be a negative market reaction on September 16. In other words, don't fear the reaper because even if interest rates rise and market volatility increases, fundamentally superior stocks continue to outperform. Ahead of the meeting, however, I suspect the stock market will trade sideways.
#rates #warsh
The Fed never fights market rates. Since market rates have risen globally due to higher energy prices, and after the ECB hike, more central banks are expected to follow and raise key interest rates.
The big news is expected to be the FOMC statement that may signal whether or not the Fed is "one and done" or signal that more key interest rate hikes will be forthcoming. Under new Fed Chairman Warsh, the Fed may not provide good guidance, since Warsh wants Wall Street to take its cue from market rates.
Related: Louis Navellier is buying 3 headline-making stocks, including Google
The good news is that with a hike already baked into the cake, there shouldn't be a negative market reaction on September 16. In other words, don't fear the reaper because even if interest rates rise and market volatility increases, fundamentally superior stocks continue to outperform. Ahead of the meeting, however, I suspect the stock market will trade sideways.
#rates #warsh
2 months ago
