December Signal
At its meeting last week, the committee decided a more explicit indication was needed, after all. And the message got through. Expectations for a December rise based on fed funds pricing have snapped back to 50 percent.
That may be exactly where the Fed’s leadership wants to keep it when they speak Wednesday, said Kermit Schoenholtz, director of the Center for Global Economy and Business at the NYU Stern School of Business, because they still want to see incoming data before making a final decision.
“December is still on the table, but it’s premature for them to close the door one way or the other,” he said.