It’s go-time for the Fed, which is expected to deliver a fourth straight jumbo hike, though obviously bigger questions hang over December onward plans. Wall Street is understandably on the fence, especially after Tuesday’s batch of good-is-bad data.
Like many, Mr. Blonde doesn’t see the Fed braking on rates until it is confident inflation is moving toward target, with any discussion on that unlikely until the first quarter of next year. Mr. Blonde also points out that doing nothing is more rewarding than it used to be, with U.S. 6-month Treasury bills TMUBMUSD06M, 4.594% offering a 4.6% yield, not bad when stacked up against BBB corporate cash credit yield of 6.5%.
Wheat futures are dropping W00, -5.54% after Russia rejoined a deal allowing grain exports to leave Ukraine.The buzz The Fed decision is due at 2 p.m. Eastern, followed by a news conference with Fed Chairman Jerome Powell at 2:30 p.m. Ahead of that, the ADP employment report is due at 8:15 a.m. Best of the web How Russia’s war in Ukraine helped the FBI crack one of the biggest cybercrime cases in yearsBlue whales are ingesting millions of microplastic particles a day