Brace for another rate hike from the Federal Reserve within the next two months, according to Charles Schwab's (SCHW - Get Report) chief investment strategist, Liz Ann Sonders. 'We're pretty convinced it's going to come in one of those two months,' she said, referring to recent commentary from a host of Fed officials hinting that the economy is strong enough to withstand a bump in the short-term fed funds rate. She said the Fed may pause in June and raise rates in July as the Brexit vote takes place roughly one week after the central bank's June meeting. 'Why take that global volatility risk?,' Sonders pondered, referencing the concern that the UK exiting the European Union could fan fears of global uncertainty. The markets are pricing in a 30 percent probability of a June rate hike and a 58 percent chance of a July liftoff. 'Given that the market has resumed its rally in the face of a Fed very clearly telegraphing that a [rate hike] is coming, that tells you that things are a little bit different now than in December, when the Fed last moved,' Sonders added. TheStreet's Scott Gamm has details from Wall Street.
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