The Federal Reserve seems to be immune to Trump’s attempt to intervene in its policy and is on course to raise rates.
SEB Research discusses the reaction to today’s FOMC minutes from the August-1st meeting.
“The minutes provide little reason to change our assessment of the Fed’s monetary policy.
All is now set for a hike at the September 25-26 meeting and we stick to our forecast that the Fed will deliver another hike in December and two hikes in 2019 (March and June),†SEB notes.
Regarding the outlook for monetary policy, the same key formulation that has been used before was used again: “it would likely soon to be appropriate to take another step in removing policy accommodationâ€. All is now set for a hike at the September meeting. There is more uncertainty about policy beyond 2018 but hikes are expected to continue in 2019.†SEB adds.
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