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

Posted By Scott Anderson In Economic Outlook | No Comments

So will Janet Yellen swipe left or swipe right?

Graph showing recent rise in job openings [1]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.

Click here to read my full report. [2]


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URL to article: https://changematters.bankofthewest.com/2016/06/10/u-s-outlook-low-rates-longer/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2016/06/graph_jobopenings_061016.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2016/06/BankoftheWest_USOutlook_06_10_16.pdf

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