Fed Holds Rates Steady But Again Signals Hike Ahead

Well another Fed meeting goes by without the earlier signaled rate hike. That is not really a surprise based on the latest data and the most recent statements by Fed Governors.  The statement released yesterday afternoon by the Fed clearly indicates a desire to raise rates by the end of the year, saying, “the Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of further progress toward its objectives.” So the consensus now is a December rate hike, although November is still an outside possibility. But we have been here at least two times before already this year – the Fed signals its intention to raise rates but the data is never really there to support that decision when the time comes. And, even now, the Fed’s own predictions of future GDP growth and inflation hardly warrant raising rates. We’ll see if that pattern repeats itself come the end of the year.