U.S. Outlook: Low rates for a while longer
So will Janet Yellen swipe left or swipe right?
Next week the FOMC will evaluate the economy and take a stance on an interest rate hike. Like a user of the Tinder app evaluating a romantic prospect, I believe Fed Chair Yellen will, once again, swipe left: Interest rate hike rejected!
For more details about what’s going on, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on June 10.Key observations:
- The June FOMC meeting has gone from a stud to a dud in just a week’s time.
- A shaky May employment report has helped put the kibosh on any near-term need to raise short-term interest rates.
- Yellen’s speech on Monday strongly hinted that a June hike was off the table.
- If a Brexit vote in the U.K. doesn’t trigger another global financial market meltdown, a September rate hike is still the most likely bet on the Fed.