The Fed seems to be hinting at a rate hike in December. Janet Yellen spoke earlier in the week and said several items.
- The economic growth is stable (however slow).
- Jobs have been added (but not many).
- The stock market has remained strong.
Yellen’s wait-and-see attitude has been caught up to. I see the GDP growth at 1.8% for 2016. Growth, not much, but still growth.
As a new president will take office, it will be really interesting how he and the new Congress will approach taxes, the infrastructure, and immigration.
I have to tell you that I’m curious about the tax situation. Hopefully, a new tax structure will lead to job growth.
I feel that Yellen isn’t waiting for a new administration and Congress to hike the interest rate. It will most likely be a hike of 25 to 50 basis points.