Improvement In U.S. Data Allows Fed To Get More Hawkish; Markets Seem Prepared For A Summer Rate Hike, But Beware Volatility As Key Dates Approach

Portfolio Advisory Group

June 1, 2016

In recent weeks, the U.S. Federal Reserve has tacked decidedly toward another interest rate hike (see below). Global equity markets have so far reacted calmly. So long as equity markets remain docile and U.S. economic data continues to rebound from a Q1 slump, there appears to be a greater than 50% probability that the Fed will raise interest rates by another 25bps by the end of July. As we’ve witnessed recently, two months is a long time in the global macro context, making a rate hike far from certain…

Read More…