SEB: September US rate hike likely but Fed hawks might push for June – eFXnews

FXStreet (Barcelona) - According to SEB, September remains the likely timing for the Fed rate lift-off to begin, but hawkish Fed members might continue to argue for a June hike, as noted by eFXnews.

Key Quotes

“As we expected, the Federal Reserve left its policy stance unchanged at the April FOMC meeting. The Fed removed the phrase “the committee judges that an increase in the target federal funds rate remains unlikely at the April FOMC meeting” from the statement and did not replace it with any particular reference to calendar time.”

“In our view, the lack of any specific calendar time suggests June will be a “live” meeting, where rate hike deliberations will begin in more earnest.”

“Our view remains that September is a more likely time for the first rate hike, but we expect several on the committee to argue for a rate hike in June, including Richmond Fed President Jeffrey Lacker, who is a voting member in 2015. Fed guidance about rate hikes after mid-year has been a staple of recent FOMC communications, and we read the statement as consistent with this messaging.”

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