Fed likely to refrain from raising rates in September meet - TDS

FXStreet (Delhi) – Annette Beacher, Chief Asia-Pac Macro Strategist at TDS, expect that the US Fed will refrain from raising rates in its forthcoming Sept meet due to the fallout on growth and inflation, in addition to the Chinese and global growth uncertainties.

Key Quotes

“Non-farm payrolls Friday (+173k + revisions) had enough good news to support the Sept hike camp but TD takes a different view, where “we continue to expect the Fed to take a pass on raising rates in Sept as they assess the fallout on growth and inflation from the sharp drop in energy prices, the rising dollar and … Chinese and global growth uncertainties”.”

“No-one really expects much from the G20 and this past weekend was no exception. Talk of not participating in “competitive devaluations” was only really aimed at China, while actions taken by the BoJ, ECB, U.S. Federal Reserve, in recent years doesn’t count apparently.”

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