Fed: Two more rate hikes in 2018 and three for 2019 - BBVA
|The Research Department at BBVA anticipate that the Federal Reserve will raise rates three times in 2019 and they keep a baselina scenario of two more hike in 2018.
Key Quotes:
“June’s FOMC statement, economic projections and press conference confirm our view that the Fed has fully transitioned to a new phase of monetary policy, leaving behind the post-crisis era.”
“Fed to continue actively managing interest rate corridor, suggesting possible future adjustments in interest paid on excess reserves.”
“Although many district surveys have shown anecdotal effects from the trade war, the committee stills views trade disputes as a potential risk to their outlook.”
“Our baseline now assumes three rate increases in 2019; for 2018, we maintain our baseline scenario of two additional rate increases (Sept. & Dec.).”
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