Analysts at Rabobank are no longer expect any rate hike by Fed this year and expects its patience suggests that they are aiming for a summer hike.
Key Quotes
“Recent movements in the yield curve confirm our view that we are getting closer to a recession. Therefore, we doubt that the economic data will be strong enough to build a case for a restart of the hiking cycle.”
“We expect the Fed to put a halt to balance sheet normalization in the second half of the year, once the case for a summer hike has collapsed.”
“In 2020 we expect the Fed to start cutting rates, but probably too late to avert a recession during the course of the year.”
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