Brexit Fallout: The U.S. Federal Interest Rate

Brexit Fallout: The U.S. Federal Interest Rate
June 27, 2016 Market Traders Institute

All this week we are going to be looking at a different aspect of Brexit’s fallout. The obvious impacts are on the world’s currencies and stock markets.  But what else is affected that is a bit more under-the-radar?

The United States has enjoyed low interest rates for the better part of a few years now.  As the U.S. economy continues to work it’s way back up, the FED has done its part to spurn the economy by keeping rates down.

However, in recent months, there have been talks that 2016 is the year that the rates are going to go up, some were saying it could happen as early as July.

But with the recent Brexit announcement, it’s not only looking like the rate hike won’t happen, but chances are increasing for a rate cut.

The likelihood of a rate cut isn’t high, currently only at about a 12% probability, but the chances are certainly higher than they were a week ago, and the chances of a rate hike have all but vanished.

What this means is at the end of the day the Fed will probably end up doing neither a rate cut nor a rate hike. The U.S. economy was hit hard enough by Brexit to remove the thought of a rate hike, but not hard enough to merit a rate cut.

The Brexit fallout is expected to continue for months after this month’s vote.  Get your piece of the action by attending a FREE webinar.  Getting in early is key as thousands of dollars of profit are on the table. Register now! Classes are filling up fast.

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