Daily Archives: Aug 30, 2016 at 07:50 am EDT

A Rate Hike Next Month? The Treasury Market Has Doubts

Yesterday’s upbeat report on consumer spending and income in the US provides fresh support for last week’s moderately hawkish comments from Fed officials, who hinted that another interest-rate hike is near, perhaps as early as next month’s Federal Open Market Committee (FOMC) meeting. Yet support for pricing in a new round of policy tightening is modest at best via Treasury yields. Is that because job growth is expected to slow in this Friday’s employment report for July after two months of strong increases?
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