The Federal Reserve just put the possibility of an interest rate hike in December firmly back on the table. In doing so, the U.S. central bank has also helped set the stage for what will be the most important 25-hour period that markets have experienced for a very long time.
From 7.45 a.m. on Dec. 3 to 8.30 a.m. on Dec. 4, markets will embark on a rollicking cross-Atlantic tour of central bank speak and economic data. It starts in Europe, where the ECB will make an interest rate decision that could see further stimulus for the region, followed by its conference at 8.30 a.m. Then at 10 a.m., Fed Chair Janet Yellen will appear before Congress. Markets will then get the chance for a brief sleep before 8.30 a.m. on Dec. 4, when the last U.S. jobs report before the Fed is scheduled to make its own interest rate decision on Dec. 16 is published. That decision could see the U.S. central bank tighten just as the ECB eases (the kind of divergence in international monetary policy that hasn’t happened since late 2008, a time of mass uncertainty). The outcome of these 25 hours will no doubt have big implications for markets.
Mark your calendars now.
