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US rates not going up until December 2017?

The interest rate market is now so sanguine on future rate hikes that we have to look out to December 2017 for the first rate to be fully priced into markets.

Federal Reserve
Source: Bloomberg

The Federal Reserve are clearly worried about the combination of falling inflation expectations, a more subdued labour market and, of course, a ‘leave’ vote in next week’s UK referendum. The fact is they still want to be in a position to hike rates, but it could be one bridge too far. Chris Weston take a look at what was said in the June FOMC meeting and where to now for US interest rates.

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