fed signals rate hike interest; markets still skeptical (@nick_fainlight)

Post on 16-Apr-2017

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Reaching 2% Target ofInflation

W I L L R A T E SR I S E ?

FED SIGNALS INTEREST RATEHIKES; MARKETS STILL SKEPTICAL

Rate Hikes

Unemployment isdropping, however jobgrowth is not growing

fast enough

Possibility of 2-3 ratehikes this year

Investors predict 23%chance of hike in June,

and 52% percentchance of hike in July

Inflation Multiple Rate Hikes Investors PredictionsSteady Growth

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THE FED’S JUNEMEETING MAY DECIDEON RAISING INTEREST

RATES TWICE THISYEAR, S IGNALING A

CONTINUING UPTICKIN THE ECONOMY.

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2

The Fed signaled in Aprilthat policymakersintended to raise interestrates this summer ifsecond quarter economicgrowth continues toshow positive trends.

If Labor markets improveand inflation remainssteady at the Fed’s 2-percent target, thenhighly likely that FederalReserve raises itsinterest rates.

Rate Hike

W W W . N I C H O L A S F A I N L I G H T . N E T

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Investors are now predicting a June hike at 26percent and a July hike at 53 percent according

to Yahoo Finance.

PREDICTIONS

If all economic indicators are signaling apositive economic upswing, then up to 2

interest rate hikes this year could be possible.

HOWEVER QUITE AFEW EXPERTS REMAIN

SKEPTICAL OF THEFED'S

CONSIDERATIONS,CALLING IT A BLUFF

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6

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Quite a few experts however remainskeptical of the Fed raising rates inthe first place, exclaiming that therecent economic growth is largelyinconsistent.

Therefore, the inconsistency shouldnot merit an interest rate hike.

Calling the "Rate HikeBluff"

Analyze

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01

Growth Indicators aresimply not showing signs of

fast enough growth

Describe02

Investors, including economists at GoldmanSachs believe that although Fed officials are

playing up the possibility of raising interest rates,the Fed will not raise interest rates this summer.

Goldman Sachs Economists:03

STRATEGIZINGWhat will the Fed really

do?

9

Fed officials believe interest rate hikes should be appropriate if the economy continuedto improve, however they are divided on whether those conditions were to be met soon

enough.

Although unemployment is dropping, employment growth is not growing fast enoughfor many Federal Bank presidents.

WE'LL JUST HAVE TOWAIT UNTIL NEXT

MONTH TO FIND OUTFOR SURE

10

Thanks for reading !

@NickFainlightNicholasFainlight.net

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