Weekly Comic: After delivering the 2nd rate hike of the year, when will Yellen raise rates again?

Published 15/06/2017, 09:49 pm

Investing.com - The Federal Reserve raised interest rates for the second time this year at the conclusion of its policy meeting on Wednesday, putting it in a range between 1.0%-1.25%.

The central bank maintained its outlook of one more rate hike for this year, as it expects that a tightening labor market will lift inflation to the 2% target over the medium term.

Despite the Fed's message, market players remained doubtful over the Fed's ability to raise rates as much as it would like before the end of the year due to a recent run of disappointing U.S. economic data.

Futures traders are pricing in less than a 20% chance of a hike at the Fed's September meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a December increase was seen at about 35%.

A Reuters poll showed that only six of 21 primary dealers that do business directly with the Fed expected a rate hike in September. Fourteen of 21 now forecast a rate increase in December.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

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