The Federal Reserve’s Meeting Minutes provided a clear hint that they are about to raise rates in June, but what’s next? The team at SEB has doubts about the next moves.
Here is their view, courtesy of eFXdata:
SEB Research discusses its reaction to the FOMC minutes from the May policy meeting.
“The minutes confirm that the Fed has become more confident that inflation will remain close to or above target but provide no clear indication that the Fed is about to step up the pace from three to four rate hikes in 2018.
We stick to our view that rising inflation pressure will force the Fed to deliver three additional hikes in 2018 (June, September and December) and expect the Fed’s median forecast to indicate a total of four hikes in 2018 when revised forecasts are presented in June. There is more uncertainty about monetary policy in 2019 but we predict two hikes (March and June),†SEB argues.
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