Analysts at Danske Bank explain that the US Fed did not raise its target range, which remains at 2.25-2.50% and states that it can afford to be ‘patient’ in raising rates, waiting to see better global data, a robust improvement in risk sentiment and higher inflation.
Key Quotes
“Based on our positive macro outlook for the US and the global economy (and hence markets), we still expect the Fed to hike this year, but it is no longer a given that the first one would come as early as June, which is our current base case.”
“We still think the Fed will end its hiking cycle this year. The Fed also seems ready to end the balance sheet run-off sooner rather than later.”
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