Link Predicts No Rate Hike in September Despite Rising Market Odds

Hightower Advisors' chief investment strategist Stephanie Link says she doesn't expect the Federal Reserve to raise interest rates in September.

This contradicts market-implied odds of a hike, which have climbed sharply since Fed Chair Kevin Warsh's Jackson Hole speech. According to the CME FedWatch tool, there is a 66.4% probability of a 25-basis-point hike, up from just 39.6% a week earlier.

Link thinks Warsh may be waiting to see whether the artificial intelligence investment boom translates into stronger productivity growth before making a move. She also pointed to the Fed's newly formed committees as a factor shaping his approach, saying Warsh has indicated he'll rely on their findings and is looking for additional tools to more accurately track inflation.