Federal Reserve Bank of Atlanta President Dennis Lockhart says the economy is ready for the first increase in short-term rates in more than nine years and it would take a significant deterioration in the data to convince him not to move in September.
The idea that the Fed is not considering a rate hike is just wrong. Indeed, I believe a rate hike will occur as long as unemployment ticks down to 5.2% or lower (The last reading was 5.3%) and a stock market crash does not occur before the September 16-17 Fed monetary policy meeting.
In the EPJ Daily Alert, I am not ruling out a crash, but I do not believe it is anywhere close to a certainty.
-RW
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