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December’s lift-off remains a (small) chance – Rabobank

FXStreet (Edinburgh) - In the light of the recent FOMC minutes and US data, Senior US Strategist at Rabobank Philip Marey has not ruled out a rate hike in December.

Key Quotes

“On balance, while recent data suggest that US GDP growth and employment growth are being dragged down by the deteriorating global economic environment, there might be just enough momentum in the US economy to push the various labor market slack measures down to the Fed’s desired levels, supporting the Committee’s confidence in the inflation outlook”.

“With two more Employment Reports to go before the December meeting, a hike before the end of the year still cannot be ruled out, although the risks of a delay into 2016 have increased considerably in recent weeks”.

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