FOMC preview from Bank of America Merrill Lynch
Between weaker May jobs data and uncertainty ahead of the UK referendum on EU membership, the markets have completely priced out any chance of a June rate hike. We concur, as this will give the Federal Open Market Committee (FOMC) more time to reassess global risks and incoming US data. While we cannot completely rule out a July hike, the hurdle for a quick improvement in the data and supportive financial conditions is relatively high. Our base case remains a September rate hike.
