Fed Hike Looms: Markets Predict 92.5% Chance of Rate Increase
The Federal Reserve is set to announce its latest federal funds rate decision on Wednesday afternoon, with markets expecting the first rate hike in three years.
CME FedWatch puts the probability of a hike at 92.5 percent, as implied by 30-Day Fed Funds futures prices, with a scant 7.5 percent probability of rates remaining the same.
According to the Bureau of Labor Statistics, August consumer prices rose 0.4 percent from July, compared to the 0.1 percent increase of the prior month, largely due to gasoline prices. Year-over-year, headline inflation held at 3.4 percent. However, core inflation, which excludes food and energy prices, cooled to 2.4 percent annually.
Noel Liston, managing broker at Core Industrial Realty, said that strong supply-and-demand fundamentals make industrial real estate relatively resilient as capital costs rise.