A week ago, the CME FedWatch tool showed a 60-65% chance there would be a quarter-point rate hike by the Federal Reserve Board at the conclusion of their two-day meeting next Wednesday afternoon. But recent public comments by Chairman Warsh have calmed those expectations. In a recent speech, Warsh called inflation, “a common challenge”, a common challenge for all economies.
He pointed to tightening monetary policies worldwide, and he added AI technology is creating a huge tailwind for economies around the world. As a result, that 60-65% chance of a rate hike has now declined to 15%, and an 85% chance, no change next week. This is the bottom-line report.
The Fed doesn’t meet in November. Their December meeting looks much different, though. Currently, CME FedWatch shows 90% chance of a rate hike.
Audio Reporting by Mark Oppold for Southeast AgNet.