Conference Call: Fed Outlook And Global Markets

Published 12/15/2015, 01:02 PM
Updated 05/14/2017, 06:45 AM

We revise down our expectations for the number of Fed hikes. We now expect three hikes in 2016 (previously four) while we still expect four hikes in 2017.

 The reason we now expect one hike less next year is due to US activity data having surprised on the downside recently and the poor risk environment (especially the low oil price). We still see a risk of the Fed coming behind the curve but we do not expect this theme to materialise before H2 16 at the earliest.

 We continue to believe that the markets underestimate the number of hikes going forward; thus, there is room for short-term yields to rise. Therefore, our forecasts for US rates remain above the forward market but we see most of the increase happening later in the spring of 2016.

To Read the Entire Report Please Click on the pdf File Below

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.