Fed Call: No urgency to move in September - RBS

Research Team at RBS, suggests that they do not expect the Fed to take action at this week’s FOMC meeting.

Key Quotes

“In our view, the case for moving six weeks before the election without clear and compelling justification is weak. However, we do expect the FOMC to signal that the door for a rate hike this year remains wide open, via changes to the statement (e.g. by indicating that risks to the outlook are now “nearly balanced”) and the “Dot Plot” (which we believe will show most participants’ preference for one or more rate hikes this year).

Chair Yellen may also reiterate in her press conference that the case for an increase in the funds rate has strengthened. Despite the Fed’s best efforts to prep the markets, the December meeting is a long three months away, and it remains to be seen whether economic conditions between now and then will allow the Fed to follow through on its plan.”