Effects of First Fed Rate Hike Already Baked In, Says Former Philly Fed Member

With the Fed meeting already underway, many are wondering if Janet Yellen will pull the trigger and raise rates from near-zero for the first time in nine years. Earlier this year a September rate hike seemed like a near certainty, but conviction has tempered somewhat amid global economic concerns. While Ted Peters, a former board member of the Philly Fed and current Chairman and CEO of Bluestone Financial Institutional Fund believes a rate hike is likely, he says much of the effects of the first hike have already been factored into the market. Furthermore, Peters says that language the Fed uses in telegraphing the first rate hike – whenever it is – may be more important than the rate hike itself.