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Sep 2, 2014
A 2015 Q4 Fed hike? - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that recent data suggest that there is sufficient momentum to sustain the recovery in the US.
Key Quotes:
“However, before the FOMC starts its hiking cycle, they want to be sure that there are no major threats left to the economic recovery”.
“While home builders remain upbeat, the demand side of the housing market is losing momentum and house prices fell both in May and June”.
“While longer-term interest rates have fallen this year, they remain well above the levels that we have seen in most of 2012 and early 2013. Since then, house prices have lost momentum and this led to the delay of the FOMC’s announcement to start tapering from September to December 2013. We would not be surprised to see a similar scenario unfold with the first rate hike”.
“Therefore, we stick to our forecast of a 2015Q4 hike”.
Key Quotes:
“However, before the FOMC starts its hiking cycle, they want to be sure that there are no major threats left to the economic recovery”.
“While home builders remain upbeat, the demand side of the housing market is losing momentum and house prices fell both in May and June”.
“While longer-term interest rates have fallen this year, they remain well above the levels that we have seen in most of 2012 and early 2013. Since then, house prices have lost momentum and this led to the delay of the FOMC’s announcement to start tapering from September to December 2013. We would not be surprised to see a similar scenario unfold with the first rate hike”.
“Therefore, we stick to our forecast of a 2015Q4 hike”.