Will the Federal Reserve Raise Interest Rates Next Week?

Will the Federal Reserve Raise Interest Rates Next Week?

One of the most important things that will happen in the market next week is the Federal Reserve's announcement about whether it will raise interest rates for the third time this year. But while the economy continues to slowly mend -- which favors higher rates -- few people expect the central bank to hike the fed funds rate anytime soon.

According to CME Group's FedWatch Tool, which uses activity in the futures market to estimate the probability of a rate rise at each of the Fed's next eight meetings, there's a 98.6% likelihood that rates will stay right where they are now next week. The current target range for the fed funds rate, which is the primary short-term interest-rate benchmark in the United States, is 1% to 1.25%.

Image source: CME Group.

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Source: Fool.com