Impax Says Fed’s September Rate Decision Is Too Close to Call, Sees Treasury Volatility Around Data

Impax Asset Management said the Federal Reserve’s September interest-rate decision is difficult to predict. The firm also said volatility in the U.S. Treasury market could increase around upcoming inflation and employment data releases.

Walter Bloomberg reported on September 2 that Impax views the Fed’s September rate decision as “effectively a 50-50 call.”

Impax said Treasury-market volatility could increase before and after upcoming U.S. inflation and labor data. Those indicators could influence the Fed’s monetary-policy decision.

The firm also said changes could emerge in the U.S. Treasury Department’s long-term bond buyback policy. It said the size of long-term bond buybacks could increase and the operations could become more frequent.