Search ForexCrunch

The Research Department at BBVA anticipate that the Federal Reserve will raise rates three times in 2019 and they keep a baselina scenario of two more hike in 2018.

Key Quotes:  

“June’s FOMC statement, economic projections and press conference confirm our view that the Fed has fully transitioned to a new phase of monetary policy, leaving behind the post-crisis era.”

“Fed to continue actively managing interest rate corridor, suggesting possible future adjustments in interest paid on excess reserves.”

“Although many district surveys have shown anecdotal effects from the trade war, the committee stills views trade disputes as a potential risk to their outlook.”

“Our baseline now assumes three rate increases in 2019; for 2018, we maintain our baseline scenario of two additional rate increases (Sept. & Dec.).”