Tuesday, October 6, 2015

Fed lift off in Jan 2016...perhaps? - Danske Bank

FXStreet (Guatemala) - Analysts at Danske Bank explained that they now see Q1 next year as the most likely time for lift-off and expect the Fed to deliver a 25bp rate hike at the January FOMC meeting.

Key Quotes:

"At that time we are likely to see the unemployment rate below 5%, the ISM should be past the bottom and Chinese data should have stabilised and recovered slightly"

"Our indicators also suggest that wage inflation should pick up, which will help the Fed feel more confident that remaining labour market slack is low. The risk is that absent any signs of rising wage inflation, the Fed will once again take the cautious approach and wait until the March FOMC meeting to increase rates."
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