Investors fear the ruddy health of the US economy could persuade officials to hold off on cutting rates until after the November presidential election.
For a brief moment last week, investors had a glimmer of hope that the Federal Reserve might just cut US interest rates this week amid signs that the economy was cooling.
After all, the European Central Bank and the Bank of Canada last week cut rates for the first time in years, while long-term US bond yields dropped sharply as investors reacted to weak economic data. (Yields fall as bond prices rise.)
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Jill Margo was a senior writer at The Australian Financial Review.
