Dec rate hike still on; Focus turns to Trump-Xi summit

Growing concerns about the health of the global economy have prompted speculation that the Fed won’t hike interest rates as aggressively as previously believed. We suspect that the strength of the domestic economy will persuade the Fed to follow through on its planned rate hike in December and we also still expect two more rate hikes in the first half of next year. But the global and domestic downside risks to that forecast are mounting.