The Fed meeting has come and there was no hike in interest rates. Was anyone really surprised? I doubt it.
The key takeaway: a Fed that is implicitly telling us it’s time to roll the dice again in December.
Unlike last year, when the Fed explicitly telegraphed the next meeting was on the table, Yellen & Company are giving themselves a little more wiggle room in the event something pops up and they hold off. Remember, it is a very cautious Fed.
Given today’s employment report and upward revisions to August and September, we’re on track for the second rate hike in the cycle.
At this pace, the fed funds rate might just make it to 2% by the start of the next decade (yes, said with a bit of sarcasm).
