07/31/2015 - Why Economists and the Market do not Agree on a Fed Rate Rise

* Why Economists and the Market do not Agree on a Fed Rate Rise
* Market Movers: Weekly Technical Outlook
* Look Ahead: Stocks
* Look Ahead: Commodities
* Global Data Highlights

As we start a new week the focus shifts to the US labor market report scheduled for release on Friday. Another solid reading of 200k + could trigger even more chatter about the prospect of a Fed rate rise, potentially as early as September, after the latest FOMC statement said that a strengthening labor market makes a rate hike more likely this year.

The interesting thing is that although economists might be saying that a rate hike could come as early as September, they are not putting their money where their mouths are. The Fed Funds Futures rate for September, a good proxy for US interest rate expectations, is not looking for a hike in September with only 17 basis points of hikes currently priced in..... Full text »

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