ING: Fed expected to hold rates this year… Rate-hike expectations excessive
ING said in its 9 monthly global economic outlook report that the Fed is expected not to raise its benchmark interest rate this year and to maintain it at the current level for an extended period. ING assessed that the market has already priced in the possibility of an additional rate hike within the year.
ING said in its 9 monthly global economic outlook report that the Fed is expected not to raise its benchmark interest rate this year and to maintain it at the current level for an extended period. The report pointed out that the market is pricing in the possibility of an additional rate hike within the year.
The report assessed that expectations for monetary tightening had increased in the market following the hawkish signals from last month’s Federal Open Market Committee (FOMC). ING said these expectations were excessive.
The report cited shelter as a key pillar of the U.S. economy. It explained that trends in shelter costs are an important factor in policy decisions.
ING stated that, under its base-case scenario, the Federal Reserve would keep its policy rate at the current level through the middle of next year. This outlook was included in the original report.
The report distinguished between warnings from Federal Reserve officials and the market's reaction. It said that current indicators alone would not be sufficient to justify further rate hikes.
The report was released on 9and ING's outlook was published in the form of a monthly report.
Sources: 연합인포맥스
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