U.S. Outlook: Low rates for a while longer

Scott Anderson
Posted by Scott Anderson
Chief Economist

So will Janet Yellen swipe left or swipe right?

Graph showing recent rise in job openingsNext 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.

Click here to read my full report.

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