BAML: Fed Likely To Hike In September, Will Elicit Rally

Bank of America Merrill Lynch analysts expect the Federal Reserve to hike interest rates in September and then expect markets to rally in the aftermath. If action isn’t taken, however, the report notes that the Fed has given in to Wall Street. “If they don’t hike, it’s an admission that Wall Street threatens to reverse the recovery on Main Street.” Fed rate hike could generate rally on the long end and have different meanings If a Fed hike does occur, BAML’s Chief Investment Strategist Michael Hartnett, along with investment strategists Brian Leung and Garrett Roche advice is that investors watch…