3 Jul 2015
Fed’s lift-off expected in December – Rabobank
FXStreet (Edinburgh) - Philip Marey, Strategist at Rabobank, reiterated his view of the Fed starting its hiking cycle in December.
Key Quotes
“Given the continuing headwinds and downside risks to the US economy, we have our doubts about a September rate hike and we see no reason to change our long-held forecast that the Fed will delay its first rate hike to Q4, and more specifically December”.
“After the first rate hike, we expect a very slow hiking cycle. In the June projections, the FOMC removed one hike from 2016, but we doubt this will be the last”.
“The unevenness and fragility of the economic recovery make it likely that the actual rate path may see a pause compared to the pace that the FOMC currently anticipates, or perhaps even a reversal”.
Key Quotes
“Given the continuing headwinds and downside risks to the US economy, we have our doubts about a September rate hike and we see no reason to change our long-held forecast that the Fed will delay its first rate hike to Q4, and more specifically December”.
“After the first rate hike, we expect a very slow hiking cycle. In the June projections, the FOMC removed one hike from 2016, but we doubt this will be the last”.
“The unevenness and fragility of the economic recovery make it likely that the actual rate path may see a pause compared to the pace that the FOMC currently anticipates, or perhaps even a reversal”.