Fed: December rate hike almost certain – BNZ

Jason Wong, Currency Strategist at BNZ, notes that the US Fed vice-chair Fischer said that the economy had moved “back in the vicinity” of the Fed's employment and inflation targets, giving a nod to a December rate hike, which is now close to fully priced.

Key Quotes

“He encouraged fiscal policies which increased the productivity of the economy and boosted long-term growth. He wasn't perturbed by the surge in 10-year bond yields, calling it “not that unusual” but warned that there wasn't a lot of room to increase the fiscal deficit “without adverse consequences down the road”.”