The Fed, German Elections and Tax Reform – Markets Take the Latest News in Stride

As expected, the Federal Reserve announced the commencement of its balance sheet runoff at last week’s meeting. The meeting did, however, contain a few surprises. First, the Fed maintained its expectation of another rate hike in December. Prior to the meeting, the odds of a rate hike in December were 53 percent, according to Bloomberg’s world interest rate probability, as investors weighed the Fed’s previously stated intention of a hike in December against persistently low inflation readings. Following the meeting, however, those odds spiked to 64 percent.

from http://newsroom.ameriprise.com/commentary/the-fed-german-elections-and-tax-reform-markets-take-latest-news-in-stride.htm

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