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The Bank of Canada had a rate hike last week after four months of unchanged rates.
Now, all eyes are on the U.S. Federal Reserve this week… with investors expecting to catch a breather.
As of this writing, the CME FedWatch Tool projects a 74.8% chance that rates will remain the same after the Fed makes its decision:
But a “no-change” decision doesn’t necessarily mean a pause is happening.
There’s a word to key in on from a recent Barron’s headline below:
The word is skip.
With the May CPI results coming out today – and to avoid a dangerous overreaction – the U.S. central bank may simply avoid a rate hike at this week’s meeting and await more data to reevaluate things.
The next policymaking Federal Open Market Committee (FOMC) meeting is scheduled near the end of July.
There will be a bit of waiting to see whether the word “skip” or “pause” would have been appropriate, but either way, our income expert John Jagerson is in your corner.
Because if there isn’t a rate hike, John forecasts what will happen for the rest of June.
If there is a surprise rate hike, John also has insight into what it means for you.
You’ll learn everything you need to know in less than six minutes by clicking on the play button in the video below: