Weekly Market Commentary 08/25/2017

The jury is still out as to whether the Federal Reserve will hike interest rates for the third time this year at its December policy meeting. As we approach the Labor Day Holiday, the markets are pricing in less than a 50% chance that the rate trigger will be pulled before the end of the year. For sure, no increase is expected at the upcoming meeting on September 19-20, although the Fed is expected to announce the start of its balance sheet unwinding. Not surprisingly, Fed chair Yellen gave no clue as to the central bank’s near-term intentions at the Jackson Hole confab on Friday, an annual gathering that attracts leading central bankers, economists, academics and other dignitaries from around the world.