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Investors Anticipate Federal Reserve Rate Hike Amid Trump's Trade Threat

Investors expect the Federal Reserve to raise interest rates at its upcoming meeting, despite President Trump's threats to cut off trade with countries that have trade deficits if rates are not lowered. Fed Chairman Kevin Warsh has adopted a hawkish stance on inflation, which remains above the target level, and the implied probability of a rate hike is over 60% according to CME Group's FedWatch tool.

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Our neutral summary

Investors expect the Federal Reserve to raise interest rates at its upcoming meeting, despite President Trump's threats to cut off trade with countries that have trade deficits if rates are not lowered. Fed Chairman Kevin Warsh has adopted a hawkish stance on inflation, which remains above the target level, and the implied probability of a rate hike is over 60% according to CME Group's FedWatch tool.

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Original Headline

Investors shrug off Trump trade threat over interest rates

Neutral Headline

Investors Anticipate Federal Reserve Rate Hike Amid Trump's Trade Threat