FOMC Rate Decision
All eyes are focused on the next FOMC meeting to be held on 9/17 when the U.S. Federal Reserve will decide whether or not to raise interest rates for the first time since the 2008 financial crisis. The decision is scheduled to be announced at 2:00pm EDT/11:00am PDT. Given the recent market turmoil and the latest set of data out of China suggesting a further economic slowdown in the country, federal funds futures contracts now only indicate a 26% probability that the FOMC will raise rates. Probability has fallen from a high of 55% at the beginning of August. This is not only the most anticipated event of 2015, but with a fairly large subset of investors who are betting that the Fed won’t raise rates until early 2016, we expect there to be a high degree of market volatility following the rate decision.