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Jim Cramer warns rates unlikely to fall soon amid U.S.-Iran war
Markets, via CME FedWatch, are pricing a 50.0% chance of a rate hike at the Sept. 15-16 FOMC meeting.
Jim Cramer said he does not expect interest rates to fall any time soon, arguing that the U.S. war with Iran is keeping rate pressure elevated, with oil stocks rebounding quickly, according to Yahoo Finance.
Yahoo Finance cited CME Group FedWatch data showing that as of Sept. 3 the market was pricing in a 50.0% chance of a rate hike at the next Federal Open Market Committee meeting on Sept. 15-16.
The outlet linked the shift in expectations to comments attributed to Fed governor Christopher Waller in a Reuters interview, saying Waller suggested the Fed could allow more time for inflation to fall before raising rates and was inclined to hold rates steady at the next meeting.
Yahoo Finance also pointed to persistent year-over-year inflation above 2.0% as measured by the Personal Consumption Expenditures, or PCE, Price Index, emphasizing that the Fed’s mandate is to keep inflation below that level and that changing the Federal Funds rate is a key tool for managing inflation.