Market Overview

A Rate Hike Before The Election?

Share:
A Rate Hike Before The Election?

The U.S. presidential election is now less than three months away, and it remains one of a number of major uncertainties right now for investors. The Federal Reserve is weighing the pros and cons of another interest rate hike on a month-to-month basis, but global economic uncertainty and mixed U.S. economic data has made the Fed’s next move difficult for investors to pin down.

A Wall Street Journal poll of 62 economists earlier this month found that 71 percent believe the Fed will delay its next move until December, after the election. A combined 18 percent of economists believe the next hike will come before the election, with 11 percent predicting September and 7 percent predicting November.

Humble Student of the Markets’ Cam Hui recently told Benzinga that he expects the Fed to wait until after the election.

“Doubtful that the #FOMC hikes before election,” Hui tweeted. “Yellen Fed telegraphs its moves but chance of rate hike in Sep & Nov still below 50%.”

Related Link: 3 Ways To Protect Your Portfolio From A Surprise September Rate Hike

Garden State Securities Chief Market Strategist Karl Snyder agrees, calling a pre-election hike “not likely, but keep an eye on Fed Fund Futures.” Snyder said the futures market is often a good guide for traders.

So far in August, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 0.6 percent, while the iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: TLT) is down 0.8 percent.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

 

Related Articles (SPY + TLT)

View Comments and Join the Discussion!

Posted-In: 2016 presidential election Cam HuiAnalyst Color Politics Top Stories Federal Reserve Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com