FOMC: reading between the lines - ING

Ross J Burland FXStreet

Rob Carnell, Chief International Economist at ING Bank explained that reading between the lines, the statement suggests that were it not for these uncertainties, the Fed would be close to hiking rates now, and would probably be ready to do so in September (our Pre-Brexit call).

Key Quotes:

However, such uncertainties are likely to remain in play in September and we believe the Fed will sit out that meeting too without action and the subsequent meeting in November, just ahead of the US Presidential Election.

It is still just possible that rates could be raised in 2016 at the December meeting, depending on the election outcome. But we marginally prefer a 1Q17 rate hike given the plentiful sources of political and financial instability in the interim. Markets are not there yet, but headed in the right direction.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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