Fed to be still in “wait and see” mode for the time being – Deutsche Bank

Research Team at Deutsche Bank expects the US Fed to be still in “wait and see” mode for the time being, wanting to know what and how policies are likely to be implemented by the new Administration, as well as how they are likely to be received by the US private sector.

Key Quotes

“We continue to expect no action at the March FOMC meeting, but recent data suggest that there will be active discussion of a possible rate hike as soon as May. Our house call is for two rate hikes this year assuming inflation settles down and remains relatively quiescent this year. But the risks are increasingly to the upside of this call.”