Fed likely to hike rates in September – TDS

FXStreet (Edinburgh) - Strategists at TD Securities believe the FOMC could start its hiking cycle in the September meeting.

Key Quotes

“Our base-case continues to be for the Fed to begin the policy normalization process at the September FOMC meeting”.

“And as the Fed begins to lay the groundwork for rate hikes, the front end of the curve should begin drifting higher in anticipation of the eventual tightening in policy”.

“However, given the weak inflationary backdrop and the expectation for the pace of tightening to be modest, any backup in rates will be moderate”.