FOMC to end its hiking cycle after the yield curve inverts in 2019 - Rabobank
|"We think that the most likely scenario is that the FOMC will end its hiking cycle after the yield curve inverts in 2019," note Rabobank analysts.
Key quotes
"While our earlier Fed calls reflected our expectation that the Fed would see the downside risks to the economic outlook and proceed cautiously, it appears that the FOMC has become overconfident and can now only be stopped by a major economic setback or a strong market signal."
"While the majority in the FOMC interprets inversion as a sign of monetary policy entering restrictive territory, we think that it is more likely a warning signal of a recession."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.