Citi: The Fed Will Still Hike in September, But There's One Big Wild Card Ahead

"Citi is sticking with its call that the Federal Reserve will hike its policy rate next month. The bank's economists, led by William Lee, interpreted the Federal Reserve's July minutes differently from other institutions, claiming that monetary policy makers' increased concerns about financial stability cemented the case for a hike in September. Others institutions have recently pushed back their estimated dates for liftoff in light of international developments and volatility in financial markets emanating from China's decision to devalue the yuan. Federal funds futures rates imply that the probability of a rate hike has slipped below 30 percent, down substantially from roughly 50 percent last week." To read more (VIEW LINK)