Fed Watch: The Fate Of The Interest Rates

Student’s Name Professor Course Date Response: Fed Watch This article is quite informative on matters to do with the fate of the interest rates. The author, Timothy Duy, explains that there is a high probability of witnessing a hawkish hike in the interest rates. He believes that market participants and central bankers are aware that the Fed will probably hike the rates this year based on several pieces of evidence (Duy, n.p.). Duy also explains that the hike will take place despite the incoming data on unemployment, inflation, and growth appearing to broadly match the expectations of the Fed. It is crucial to note that there are several reasons for the anticipated interest rates hike. There are three economic aspects or “influencer” to keep an eye on. Such include tailwinds from fiscal stimulus, global growth as well as easy financial conditions (Duy, n.p.). The fiscal stimulus observation made in the previous Federal Open Market Committee (FOMC) meeting indicated a possible hike and that should be expected to prolong for some time (Duy, n.p.). Creating confidence through press conferences at full employment could also enable Fed to increase the rates (Duy, n.p.). Duy also poin...