The Federal Reserve Boards Open Market Committee is expected to raise interest rates by 50 basis points when it meets Tuesday. Lyle Gramley, consulting economist to the Mortgage Bankers Association, said, I dont think its going to have much effect on the stock or bond markets because it is so widely anticipated.
Peggy Woodford Forbes, chairwoman, CEO and chief investment officer at Woodford Capital Management, said CPI indicators are up, but it was not horrendous. She added that Woodford Capital is allocated fairly well to brace for an increase.
Also expecting a 50 basis-point rise is Gary Beauchamp, economic strategist for AIM Capital Management. He speculated that the Fed would like to take care of the increase prior to the elections.