What Will the Fed Do on August 8th???

I know, I know, it is Tuesday. One day late from what I promised but I have a good excuse. I just got back into town late last night from visiting my grandfather in Iowa. It was great to see him but glad I am back. If you thought the temperature was hot here, is was about 5-7 degrees warmer everyday there. Thank goodness for air conditioning. Enough rambling, let's get on with the important stuff.

The Fed Funds Futures are now pricing a 41% chance of another Fed Funds Rate hike, up from 33% yesterday. And the deciding piece of economic data appears to be this Friday’s Employment Report with its new jobs and hourly earnings numbers. While economists are predicting the formation of 140,000 new jobs in July, job growth over the past three months has been averaging a rusty 108,000 jobs per month. If the new jobs number comes in at or below consensus estimates, the probability of another hike would be pretty slim. However, if the jobs number comes in much hotter than expectations, the Fed may just decide to go with one more toot on the trombone on August 8th.

Keep an eye on what happens for all of you with a Home Equity Line of Credit and credit cards. If the Fed moves the rate it will hit your monthly statements. Don't hesitate to call me to put a plan together to improve your debt situation. Until next Monday...