Fed funds futures odds of a U.S rate rise before the end of the year have climbed above +60% after Fed Chair Janet Yellen said yesterday that the bank should be “wary of moving too gradually.” She said that it would be “imprudent to wait” for inflation to hit the +2% target before tightening further.
Capital markets will be eyeing today’s agenda for Fed speakers for clues to timing of future U.S rate hikes. The Fed rotation begins with Minneapolis Federal Reserve President Neel Kashkari speaking at 9:15 a.m., St. Louis Fed President James Bullard at 1:30 p.m., Governor Lael Brainard at 2:00 p.m., and Boston Fed President Eric Rosengren taking the evening slot at 7:00 p.m.
Also keeping markets occupied will be the White House unveiling of Trump’s Tax plan. It’s rumored to include a corporation tax cut from 35% to 20% and a reduction in the top individual rate to 35%, while Congress will be allowed to decide whether to impose a higher rate on top earners.
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Dean Popplewell
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