FOMC: No change on Wednesday, rate hike in December - Wells Fargo
|On Tuesday the 2-day FOMC meeting will start. Analysts from Wells Fargo expect no change in rates and they see the Fed raising rates in December.
Key Quotes:
“Prior to the May jobs report, the July FOMC meeting looked like a serious possibility for another Fed rate rise. Fed officials had been discussing the potential for multiple rate hikes in 2016, but signaled some reluctance to move ahead of the U.K.’s referendum. While job growth rebounded in June, the United Kingdom’s decision to leave the European Union has reignited concerns about global growth and has pushed back expectations for another increase in the fed funds rate.”
“No change in policy is expected at next week’s FOMC meeting, and there will be no press conference or updated economic projections. The statement, however, should give some insight into how the Fed views the risks of Brexit.”
“While global concerns are likely to keep the Fed on hold the next few months, we expect continued improvement in the labor market and stronger wage growth will lead the FOMC to raise the fed funds target rate in December.”
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