Are Interest Rates Going Up in June 2017?

Jon Banking

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
Thanks to the unemployment rate reaching a 10-year low in April, it’s likely that interest rates are going up in June 2017. According to CME Group’s FedWatch Tool, a gauge of the market’s expectations, there’s now a 78.5% chance the Fed will raise interest rates at the June 13-14 FOMC meeting.
The Fed wants to raise rates at the June FOMC meeting so it can stay on track with the goal it set in December 2016. At the time, officials said they wanted a total of three interest rate hikes in 2017. Interest rates were raised in March, which means we need two more rate hikes before the end of the year.
There are only four FOMC meetings after June, so the Fed is running out of opportunities…

This post was published at Wall Street Examiner on May 23, 2017.