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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts