Traders Getting More Bullish About September Rate Hike Surge

Traders have never been more convinced of a September rate hike by the Federal Reserve, Alexandra Scaggs reports at Bloomberg.

The expectation of traders of an interest-rate increase next month reached 52 percent Wednesday,  up from just 38 percent just two days earlier.

But the strong likelihood of a September rate hike comes as no surprise to EPJ Daily Alert subscribers. I have identified September as the most likely for a Fed rate hike for some time.

But the rate hike is still not in the bag. For the ALERT, I am monitoring key data that will be released early in September that will provide much more guidance on what the Fed will do.

Also, there is a growing threat of a stock market crash, which, if one does occur before the Fed monetary policy meeting on September 16-17, would, of course, put the rate hike on hold.

   -RW