Fed rate hike unlikely in 2016? – AceTrader

FXStreet (Barcelona) – The AceTrader Team shares Fed Evans comment that that the soft US economic data suggests a rate hike by Fed would be appropriate only in the first half of 2016.

Key Quotes

“The Federal Reserve Beige Book report of anecdotal information on business activity collected from contacts nationwide showed the U.S. central bank said most of its regional Fed banks reported that while manufacturing had either held steady or increased, growth was tempered by the downturn in the oil and gas industry.”

“Chicago Fed President Charles Evans told reporters in Chicago that the hurdle for raising U.S. interest rates is “pretty high” at the moment, and in fact it is unlikely the economy will be ready for higher rates before next year. Fed’s Evan said economic data has come in weaker than expected since when Fed officials last made their quarterly economic forecasts, in March. That means that a rate hike is unlikely to be appropriate until the first half of 2016 or perhaps even later. If rates go up this year it’s important it is a very shallow increase.”

The AceTrader Team shares Fed Evans comment that that the soft US economic data suggests a rate hike by Fed would be appropriate only in the first half of 2016.

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