It is September. Summer is over and all eyes are on the FED! Is there any strong rate hike possibility in September? Richmond Fed President Jeffrey Lacker says yes!
As the summer came to its final bit on the Northern hemisphere, the market started to show its volatile face once again. The volatility in the market is mostly due to disappointing NFP employment data. While views on rate hike varies investors are focused on September FOMC meeting results.
After the congressional hearing in Washington, Richmond Fed President Jeffrey Lacker commented positively about rate hike possibility in September to reporters:
“It looks like the case for a rate increase is going to be strong in September”
Mr. Lacker is not a voting FOMC member however his comments can and does ignite market volatility. In his September rate hike possibility Mr. Lacker argued that America’s strong labor market was reason to lift rates, thus traders and investors should expect strong rate hike possibility in September.
Fed Chair Janet Yellen commented in August that the case for rate hike has increased and was firming. However, the head of the most influential financial authority of the world did not not give any direct comment on when such a move could happen, and other policymakers have urged more caution about rate hikes.
Earlier AtoZForex team also reported about the US labour market hitting its highest highs and Kansas City Fed President Esther George, who is a voting FOMC member commented during the hearing she believes the U.S. labor market is at or near full strength.