Is Stagnation Holding Back the Fed From Hiking Rates?
The Federal Reserve will keep rates unchanged for the sixth consecutive meeting next week while strengthening guidance about its intentions to raise borrowing costs soon, according to economists surveyed by Bloomberg News. Fed watchers assigned a 54 percent probability to a rate increase in December, and just a 15 percent chance of a hike when officials meet Sept. 20-21. When asked if the Fed will communicate a stronger intent to raise rates in the near future, 65 percent of economists in the survey said yes. Former U.S. Treasury Secretary Lawrence Summers says that he sees “no compelling case” for a Federal Reserve interest rate increase in September. Seneca Investment Managers Chief Investment Officer Peter Elston discusses this and his outlook for equities with Bloomberg's Anna Edwards on "Countdown."