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27 May 2015
A Fed’s rate hike this year remains well on the table – BTMU
FXStreet (Edinburgh) - Derek Halpenny, Head of GMR at BTMU, noted the last results in the US economy and the recent Fedspeak all pointing to a rates lift-off this year.
Key Quotes
“The speech from Janet Yellen last Friday has certainly helped strengthen the view that a rate increase this year is now more likely. But it will be the data that ultimately determines the timing of the first rate increase”.
“The better data will certainly have encouraged Richmond Fed President Lacker who is clearly on the hawkish side of the FOMC spectrum and votes this year. He has not yet made up his mind on whether to vote for a rate increase in June but emphasised the risk of waiting too long to tighten”.
“Fed Chair Yellen will not speak at Jackson Hole this year which is scheduled about three weeks before the September 17th FOMC meeting”.
“This has happened before but we guess if the Fed is in a position to raise rates in September, that will be communicated to the financial markets well before the end of August”.
Key Quotes
“The speech from Janet Yellen last Friday has certainly helped strengthen the view that a rate increase this year is now more likely. But it will be the data that ultimately determines the timing of the first rate increase”.
“The better data will certainly have encouraged Richmond Fed President Lacker who is clearly on the hawkish side of the FOMC spectrum and votes this year. He has not yet made up his mind on whether to vote for a rate increase in June but emphasised the risk of waiting too long to tighten”.
“Fed Chair Yellen will not speak at Jackson Hole this year which is scheduled about three weeks before the September 17th FOMC meeting”.
“This has happened before but we guess if the Fed is in a position to raise rates in September, that will be communicated to the financial markets well before the end of August”.