Marc Ostwald – Market strategist at ADM Investor Services – joined Zak Mir and Bill Hubard in the Tip TV studio to discuss the question on everybody’s minds: Will the Federal Reserve hike interest rates?
Yellen’s gun.
Richard Fisher said earlier that he believes any decision will be made at the table on the day, presumably due to mixed data. However Ostwald believes that Janet Yellen has dangled the possibility of a rate hike for too long, and too delay once more will lead to much more market uncertainty and concern.
Side-lined money waiting for a move.
With a probability of 28% to see an interest rate hike today, Ostwald believes that many will be leaning against it; and with many possible reasons to delay the hike once again, it’s no surprise that investors are waiting for a decision either way before committing to a move. Ostwald believes that following the announcement either way, any markets exposed to a change will become much more volatile going into the weekend.
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