Data, Tighter Financial Conditions Might Lower Odds of December Fed Rate Hike
Dow Jones11-03 14:15
0615 GMT - A combination of softer labor market data, evidence of slowing consumer demand or additional tightening in financial conditions could reduce the odds of an interest-rate hike by the Federal Reserve in December, says JoAnne Bianco at BondBloxx Investment Management in a note. "A broader pattern of moderating growth and easing inflation pressures would likely make the Fed more comfortable remaining on hold," the senior investment strategist says. Markets have shown that rate hike expectations can move quickly when incoming data challenge the narrative of a resilient economy, she adds. Money markets currently price a 74% probability of a 25-basis-point Fed rate hike in December, according to LSEG.
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