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19 May 2015
Fed could still hike in June – UOB
FXStreet (Edinburgh) - Analysts at UOB Group assessed the recent speech by Fed’s Evans, noting that a rates lift-off in at the June meeting has not been ruled out.
Key Quotes
“Chicago Fed President, Charles Evans (voter in 2015 FOMC) who was speaking on the US economy & monetary policy in Stockholm, Sweden on Monday (18 May) reiterated his stance that the Fed Reserve should hold interest rates near zero until early 2016 and raise them only gradually thereafter, because inflation is still too far below the Fed’s goal and will “not see inflation rising to our 2 percent target until 2018”.
“That said, he still highlighted the case for why the Fed may still be considering June to lift rates, saying that “if the data from the committee standpoint indicates that it’s sufficient to have confidence in inflation going to move up and if we have confidence about the path of the economy we see through first-quarter softness, you could imagine a case being made for a rate increase in June.”
Key Quotes
“Chicago Fed President, Charles Evans (voter in 2015 FOMC) who was speaking on the US economy & monetary policy in Stockholm, Sweden on Monday (18 May) reiterated his stance that the Fed Reserve should hold interest rates near zero until early 2016 and raise them only gradually thereafter, because inflation is still too far below the Fed’s goal and will “not see inflation rising to our 2 percent target until 2018”.
“That said, he still highlighted the case for why the Fed may still be considering June to lift rates, saying that “if the data from the committee standpoint indicates that it’s sufficient to have confidence in inflation going to move up and if we have confidence about the path of the economy we see through first-quarter softness, you could imagine a case being made for a rate increase in June.”