19 Jun 2015
September rate hike can be right back as a frontrunner – JP Morgan
FXStreet (Mumbai) - The Federal Reserve may increase its key policy rate by as much as 2% by the end of next year, with gradual hikes possible during every other meeting once the cycle begins, JPMorgan's chief US economist Michael Feroli said on Thursday.
Michael Feroli noted, the fed funds rate will "probably be more like 1.75% to 2%" by 2016 end.
He further added, "If we get to 2%, that would be accommodative by normal measures." To get there, he said, the Federal Reserve (Fed) could hike rates "every other meeting perhaps."
Feroli said he still believes the lift-off will begin in September, though with "less conviction" after the latest Fed developments. "If it looks like the second quarter [economy] is going to be pretty decent, I think September can be right back as a frontrunner."
Michael Feroli noted, the fed funds rate will "probably be more like 1.75% to 2%" by 2016 end.
He further added, "If we get to 2%, that would be accommodative by normal measures." To get there, he said, the Federal Reserve (Fed) could hike rates "every other meeting perhaps."
Feroli said he still believes the lift-off will begin in September, though with "less conviction" after the latest Fed developments. "If it looks like the second quarter [economy] is going to be pretty decent, I think September can be right back as a frontrunner."