On September 16, the Federal Reserve raised its benchmark interest rate by a quarter percentage point to a new target range of 3.75-4%. That was the first rate hike since July 2023.

I caught up with Cory Nordhausen, vice president of sales with AgDirect, during the Moving Iron Summit in Louisville. He says there continues to be volatility surrounding interest rates. 

"Just like everything else in the marketplace today, it seems to be a lot of volatility and with AgDirect, that's volatility in interest rates. We saw the Fed last week raise their federal fund rates by 25 basis points. Looking out in the forecast, the Fed next meets October 28th. Just looked this morning, it looks like there's probably about a 65% chance that the Fed could increase. And then if you look towards the end of the year, December and January, right now they're forecasting about a fifty fifty chance that there could be another rate increase. So definitely volatility in the rate market, but AgDirect is here to help you anyway. We got fixed products, variable products. We're available at dealers, auctions, private party sales. So please reach out to us so we can help you find that next piece of equipment to purchase."

Looking at the CME Group’s FedWatch Tool, the probability has dropped from the 65% chance of a cut to a 58.5% chance we’ll see a cut during the October meeting. The probability of a cut in December is still hovering around 55%. 

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