U.S. Outlook: September FOMC rate hike — a go or no go?
Several prominent Fed governors have tried in recent weeks to prepare markets for a near-term 0.25 percentage point rate hike.
For more on what this could possibly mean, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Sept. 9.Key observations:
- The much-feared financial contagion from the U.K. Brexit vote has been more limited than expected so far.
- We believe another rate hike from the FOMC at the Sept. 21 meeting would be a risky policy move and premature.
- There are already growing signs the U.S. economy may be cooling down in August into September.
- The summer bounce the U.S. economy got in June and July may be short-lived.