9 Jul 2015
Fed expected to hike rates twice this year - RBC
FXStreet (Barcelona) - Josh Nye, Economist at RBC Economics, sees probability of two 25bp rate hikes in the US in this year, September and in December.
Key Quotes
“We expect stronger domestic activity will provide more than enough offset to leave a majority of voting members comfortable with raising rates this year. Our forecast assumes a return to above-trend growth in Q2 and the second half of the year will result in further improvement in the labour market and increased confidence that underlying inflation is on its way back to the committee’s target.”
“We expect the FOMC will raise the target band for the fed funds rate by 25bp in September, followed by a similar increase in December.”
Key Quotes
“We expect stronger domestic activity will provide more than enough offset to leave a majority of voting members comfortable with raising rates this year. Our forecast assumes a return to above-trend growth in Q2 and the second half of the year will result in further improvement in the labour market and increased confidence that underlying inflation is on its way back to the committee’s target.”
“We expect the FOMC will raise the target band for the fed funds rate by 25bp in September, followed by a similar increase in December.”