The case for and against a Fed rate hike in September

Most investors expect the Federal Reserve to pause its interest rate hiking cycle at its September meeting. But not everyone. Miramar Capital Co-Founder and Senior Portfolio Manager Max Wasserman notes that core inflation is still high and that if there is a big inflation print, then the Fed “is going to be behind and people are going to expect even greater. So I think he (Fed Chair Powell) needs to do a quarter.” Waddell & Associates CEO and Chief Investment Strategist David Waddell argues, however, that the economy is slowing, China is “exporting disinflation,” and, “outside of housing, there really isn’t inflation in the numbers, then why are rates going to go so much higher?” Waddell also notes that real interest rates are rising, so he is “not sure the Fed really does have to do a whole lot more.”

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