US Economics

Fed Watch

6 June, 2018

Recent market turmoil will not derail the Fed

Despite political tensions in Europe and the uncertainty over trade policy, we expect the Fed to press ahead and raise interest rates at next week’s FOMC meeting. With second quarter GDP growth tracking at between 3.5% and 4.0% annualised and signs that underlying price pressures are picking up, the accompanying statement and economic projections may well hint that a further two rate hikes are coming in the second half of this year.

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