5 0 inShare Link Comment J.P. Morgan Economist: Fed Rate Hike Likely Comes in September

The Federal Reserve released the minutes of its open market committee, revealing it’s in no hurry to hike interest rates. While this may be true, Jeff Greenberg, senior economist at J.P. Morgan Private Bank, says a rate hike will likely come in September.

However, he was quick to point out the Federal Reserve is comfortable being patient and he believes the “pace of those hikes will be very gradual.” The Fed will likely take its time increasing rates, and Greenberg says he doesn’t expect to see long-term rates move higher by all that much.

It also helps that the European Central Bank and Japan are taking their own easing measures, which makes it easier for the Fed to justify its lower-for-longer rate policy.

Traditionally, inflation is the danger associated with leaving rates low. But with little inflation in both the U.S. and global economies, economists aren’t particularly worried about it this time around, Greenberg explained.

In fact, tightening too soon seems like a bigger risk, he added, because the U.S. economy “is firing on all cylinders” and the labor market is improving.

Should the Federal Reserve increase rates, it will likely add fuel to the fire of a rallying U.S. dollar. Lower gasoline is certainly giving more strength to the consumer, even if they aren’t rushing out and spending all of that savings right away, Greenberg concluded.

 Varchev Traders

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance