“I think by and large the fact that the interest rates are going up a little bit and the currency is fluctuating, it’s still not going to be enough to derail what we’re seeing right here,” said Charlop.
All of the aforementioned data almost provides a clear, unobstructed path to raising interest rates in September. Looking at the federal funds rate chart for the last five years, the short-term rate adjustments have presented a steep incline with possibly more to come.
The path to higher interest rates won’t come without U.S. President Donald Trump voicing his disdain for elevated rates. Earlier this year, President Trump expressed his disdain for rising rates, telling CNBC in an interview that he was “not happy about it.”
“I’m not thrilled,” said Trump. “Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
“But I don’t like all of this work that goes into doing what we’re doing.”
For more fixed-income trends, visit the Fixed Income Channel.
