5 Aug 2015
Fed’s lift-off most likely in December – Rabobank
FXStreet (Edinburgh) - Strategist at Rabobank Philip Marey, leans towards a Fed’s rate hike in December rather than September.
Key Quotes
“In other words, while the FOMC has become more confident of the economic recovery, it has become less confident about the inflation outlook”.
“All in all, while a September rate hike remains a distinct possibility, we still have our doubts and we continue to attach a higher probability to a December lift-off”.
“We think that the FOMC, which has a large dovish majority, would like to see more evidence of strength in the economy and ‘reasonable confidence’ that inflation is moving back to target than the data are likely to provide before the September meeting”.
Key Quotes
“In other words, while the FOMC has become more confident of the economic recovery, it has become less confident about the inflation outlook”.
“All in all, while a September rate hike remains a distinct possibility, we still have our doubts and we continue to attach a higher probability to a December lift-off”.
“We think that the FOMC, which has a large dovish majority, would like to see more evidence of strength in the economy and ‘reasonable confidence’ that inflation is moving back to target than the data are likely to provide before the September meeting”.