While the strength of real economic growth and employment suggest that the Fed should begin to raise rates very soon, the mixed news on wages, the lack of any pick-up in core inflation and recent market volatility seem to have persuaded officials that they should delay lift-off until the middle of this year. As a result, next week we expect the Fed to maintain the language in its post-FOMC meeting statement that it "can be patient in beginning to normalise the stance of monetary policy".
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