It’s Not What The Fed Will Do, It’s What It Will Say

The Federal Reserve could decide to raise the Fed funds rate to 0.5/0.75% from 0.25%/0.5% at the end of next week’s FOMC monetary policy meeting (September 20-21st). It would be the first rate hike since December ’15. Indeed, recently many Fed members have highlighted the positive trend in the US economy, increasing the possibilities of a rate hike as soon as in September. Chairwoman Janet Yellen’s speech at the Jackson Hole monetary policy symposium on August 26th was a clear example. Yellen explained that…

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