Interest rate hike – a sure thing?

Yesterday, Federal Reserve Chair Janet Yellen testified before Congress’s Joint Economic Committee, and her comments were nearly identical to parts of a speech she gave to the Economic Club of Washington on Wednesday:


“Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2 percent.”


A done deal?


We know that the FOMC has been looking for improvements in the labor market and waiting for more confidence that inflation would move back to the Fed’s 2% target (which it hasn’t reached since April 2012).  In her testimony, Yellen noted the recent strong gains in the labor market, including the October jobs report showing 271,000 new positions which pushed unemployment down to 5%. Today’s jobs report showed 211,000 jobs added last month, which may make a rise in the interest rate a done deal.


Perhaps her most telling comment about labor was this: “I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market.”


Getting ready


Smart traders are already making sure they’re ready for a rate hike, and even smarter traders will succeed no matter what happens.  How can you make sure you’ll make the right moves after the FOMC meeting this month?  We recommend you join us for our free expert analysis webinars to find out what our team is doing with their own trading.


A U.S. interest rate hike will not only affect the U.S. stock and options markets.  It will also have an influence on USD in its Forex pairs (similar to what we saw yesterday with EUR when the ECB released its interest rate announcement).


You deserve to know everything you can as we head into uncertain waters.  Make sure you register for one of our free Forex webinars by using the form below, or sign up for an equities webinar by going to https://www.markettraders.com/stock-package/.

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