Fed: September liftoff still a possibility – Nomura

FXStreet (Bali) – As Nomura North America Economics Team writes, while FOMC participants expressed concerns about recent market volatility last week, they did not rule out a Sep hike, despite the reasons are ‘less compelling’, the bank notes.

Key Quotes

“In our view, this week’s financial market developments make it less likely that the FOMC raises interest rates at its September FOMC meeting, and we still hold our view that the most likely timing of liftoff will come in December.”

“Of course, how financial markets evolve between now and the September FOMC meeting will matter. Also, how next week’s data, in particular the August employment report, ISM surveys, and July trade report, perform could also affect the timing of liftoff.”

As Nomura North America Economics Team writes, while FOMC participants expressed concerns about recent market volatility last week, they did not rule out a Sep hike, despite the reasons are ‘less compelling’, the bank notes.

(Market News Provided by FXstreet)