Bill Evans, Chief Economist at Westpac, suggests that based on their current growth and employment forecasts, the FED is likely to raise the federal funds rate to a peak of 3.125% by September next year. Key Quotes “We have extended our profile for interest rate increases by the Federal Reserve’s FOMC by 25 basis points.” “We now expect the final hike in this cycle to be September 2019 rather than June. This will see the federal funds rate peak at 3.125%.” “This profile is somewhat more hawkish than current market pricing which expects the federal funds rate to peak at around 2.9% by end 2019.” “While the FOMC’s “dots” envisage a peak of 3.4%, this assumes a continuation of above-trend growth in 2020. We instead expect growth to decelerate to trend in late 2019.” “We are expecting a slowdown in employment growth through the second half of 2019 from around 1.6% at March 2019 (six month annualised) to around 1% by year’s end. Furthermore we expect the contributions to growth from housing and durables spending to decline significantly in the second half.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China: Chance for a trade truce with the US – Nordea Markets FX Street 3 years Bill Evans, Chief Economist at Westpac, suggests that based on their current growth and employment forecasts, the FED is likely to raise the federal funds rate to a peak of 3.125% by September next year. Key Quotes "We have extended our profile for interest rate increases by the Federal Reserve's FOMC by 25 basis points." "We now expect the final hike in this cycle to be September 2019 rather than June. This will see the federal funds rate peak at 3.125%." "This profile is somewhat more hawkish than current market pricing which expects the federal funds rate to peak at… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
