Credit Agricole: Fed still preparing for lift-off but not impatient – eFXnews

FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that September will likely be the time when the Fed begins its rate normalization.

Key Quotes

“The FOMC dropped the patient reference in its forward guidance to give it more flexibility to respond to incoming data as it moves towards rate normalization. Yet, updated projections suggested they were in no hurry to hike rates.”

“The Fed will await further improvement in labor market conditions and wants to be reasonably confident that inflation will move back to its 2% objective over the medium term.”

“Different views on the timing of liftoff were evident in the meeting minutes.”

“We see the September meeting as the most likely time to begin rate normalization, as the Fed will have data likely confirming a rebound in Q2 activity and some of the near-term factors putting downward pressure on core inflation may begin to dissipate.”

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