Article source: CMDGroup
September 17 is fast approaching. In fact, by the time you read this, it may already have been and gone. Why is that date so important? Because that’s when the next Federal Open Market Committee (FOMC) of the Federal Reserve is scheduled to meet, with an announcement concerning interest rates to follow.
The federal funds rate hasn’t been altered from a range of 0.00% to 0.25% since December 16, 2008, nearly seven years ago. In mid-summer of this year, there seemed to be a strong likelihood the Fed would begin shifting yields higher in September. Then world stock markets fell into disarray as growth projections for China’s economy were scaled back and the yuan was devalued, slightly.
If the fed temporarily delays pulling the trigger out of concern over fragile world trade, the next FOMC meeting dates to mark on your calendar are October 28 and December 16 of this year and January 27 of 2016. Odds are pretty good that somewhere in that time frame, the fed will initiate tighter credit market action.
The Fed’s decision-making will take place against a backdrop that includes the following economic nuggets, as revealed in government reports and through media dissemination.