Will Drifting Growth Kick Fed Into Hiking Rates?
The U.S. economy expanded at a modest pace since mid-May amid “slight” price pressures and some softening in consumer spending, according to a report from the Federal Reserve’s 12 districts that lacked any sense of urgency on the need to raise interest rates soon. The Fed’s policy-setting panel next meets July 26-27. Investors see about a 5 percent probability of a rate increase at that meeting, according to pricing in federal fund futures contracts, as officials weigh global risks after the U.K. voted June 23 to leave the European Union. Odds of a move by December were around 32 percent. UBS Global Economist Paul Donovan discusses with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."