FED: Forecast looking in need of downward revision – ING

FXStreet (Córdoba) – Rob Carnell, analyst at ING Bank, explained that after today’s US durable goods order report, their forecast of two rate hikes during 2016 from the Federal Reserve is “looking overly aggressive right now”.

Key Quotes:

“We will take a long hard look at our slightly-above-consensus 1.3%QoQ (saar) forecast for tomorrow’s GDP data. In particular, to see if we have a weak enough business investment figure. There is a good chance that we will trim that GDP forecast closer to the existing consensus (0.9%) though that will already be being revised lower as we speak, and the published consensus will now look optimistic to many.”

“With weather likely to weigh on 1Q16 GDP, and the Fed sounding more dovish by the day, our current forecast of two rate hikes from the Fed in 2016 is looking overly aggressive right now, and is also looking in need of downward modification.”

Rob Carnell, analyst at ING Bank, explained that after today’s US durable goods order report, their forecast of two rate hikes during 2016 from the Federal Reserve is “looking overly aggressive right now”.

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