BEFORE THE BELL: US Fed Reserve takes limelight with interest rate hike expected
The US Federal Reserve is expected to hike its interest rate once again today. While the likely third hike is of interest to investors, experts say there may also be indications of what’s coming next from the Central Bank. Some analysts expect a fourth rate hike in December before the end of the year as the US economy continues to swell beyond expectations.
Meanwhile trade worries are rising as US officials warn Ottawa there’s less than a week left to nail down a NAFTA deal. Donald Trump has threatened to hit Canada with auto trade tariffs if a deal isn’t reached.
But, the price of oil is starting to take center stage as investors fret over a future cut in Iranian flow when US sanctions kick in this November. OPEC is refusing to make up for the loss in production, which could drain stocks as demand for crude is expected to continue growing. US crude is pulling back slightly this morning, but still remains high at 72.08 a barrel.
The Loonie is falling to 77.18 cents US.