Odds Remain for Fed Rate Hike in December After Wednesday's Hold
Dow Jones13:49
0549 GMT - After the Federal Reserve left interest rates on hold on Wednesday, as expected, "the market continues to largely believe December will see another hike," says Catalyst Fund's Larry Holzenthaler. "With two dissents, one would have to believe that a hike in December is a certainty," the senior portfolio manager says. "Chairman Kevin Warsh's remarks also seem to indicate that the Fed's primary focus is on price stability versus the jobs market," he says. Holzenthaler says he would "certainly not assume that the Fed is done raising rates listening to his remarks." Money markets price in a 83% probability of a 25-basis-point rate hike at the December policy meeting, according to LSEG.
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