Why the Fed Won't Raise Interest Rates by 100bps Next Week, According to Goldman Sachs
Federal Reserve will stop short of unleashing its inflation-fighting bazooka when it meets to decide the fate of interest rates later this month.
Federal Reserve will stop short of unleashing its inflation-fighting bazooka when it meets to decide the fate of interest rates later this month.
Chief global equity strategist said it’s premature to bet the pressure is reducing on the Federal Reserve to tighten monetary policy.
Despite the Consumer Price Index (CPI) rate surging 9.1% in June, White House officials expect sticker prices, including gas prices, to decline.
Fed officials may debate one percentage-point rate hike this month after another searing inflation report piled pressure on central bank to act.
Inflation remains at a 40-year high, suggesting that the Federal Reserve should remain aggressive in raising rates.
Repricing comes ahead of key inflation report due. The headline figure for June is set to accelerate to 8.8% year over year, the highest since 1981.
Head of US interest-rates strategy at BofA makes no apologies for repeatedly calling on Yellen’s Treasury Department this year to enact big reforms.