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18 Mar 2015
Credit Agricole: Fed to start hiking rates in September- eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Credit Agricole’s view regarding today’s FOMC meeting and Fed rate hike plan.
Key Quotes
“We believe the March FOMC statement will drop the “patient” reference in its forward guidance. The decision on when and at what pace the FOMC will raise policy rates will be based on incoming economic data and rising confidence that inflation will move towards its 2% objective over the medium term.”
“The considerable progress achieved in reducing labor market slack suggests the FOMC is approaching labor market conditions consistent with its employment mandate.”
“However, the Fed is likely to require more evidence before being reasonably confident that inflation will rise towards its 2% objective over the medium term.”
“We believe the data will not provide the FOMC voters with enough confidence to hike rates until the third quarter, most likely in September. Most Fed officials expect to begin hiking rates this year.”
“We expect the year-end 2015 median fed funds rate projection to be below the December projection, in line with the gradual pace of rate normalization.”
“The equilibrium fed funds rate projection is expected to remain below its longer-term average. Finally, the updated Summary of Economic Projections will likely lower unemployment rate projections as well as core inflation projections.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We believe the March FOMC statement will drop the “patient” reference in its forward guidance. The decision on when and at what pace the FOMC will raise policy rates will be based on incoming economic data and rising confidence that inflation will move towards its 2% objective over the medium term.”
“The considerable progress achieved in reducing labor market slack suggests the FOMC is approaching labor market conditions consistent with its employment mandate.”
“However, the Fed is likely to require more evidence before being reasonably confident that inflation will rise towards its 2% objective over the medium term.”
“We believe the data will not provide the FOMC voters with enough confidence to hike rates until the third quarter, most likely in September. Most Fed officials expect to begin hiking rates this year.”
“We expect the year-end 2015 median fed funds rate projection to be below the December projection, in line with the gradual pace of rate normalization.”
“The equilibrium fed funds rate projection is expected to remain below its longer-term average. Finally, the updated Summary of Economic Projections will likely lower unemployment rate projections as well as core inflation projections.”
This content has been provided under specific arrangement with eFXnews.