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13 Apr 2015
Strong case for a June hike by the Fed? – UOB
FXStreet (Barcelona) - The Research Team at UOB Group share the view on US rate hike by Fed members Lacker and Kocherlakota.
Key Quotes
“Richmond Fed President, Jeffrey Lacker (voter in 2015 FOMC) said on Friday (10 Apr) that there was a substantial amount of support for a June rate hike at the last FOMC meeting. Lacker still saw a strong case for FOMC to raise rates at June meeting as he opined that the Fed should look through fluctuations in data.”
“While he expects strong USD to be a drag on exports, he noted that the strong labor market will drive wages higher.”
“In comparison, Minneapolis Fed President, Narayana Kocherlakota (non-voter in 2015 FOMC) reiterated his view that the Fed should not raise rates in 2015, and that the Fed should wait until 2H16 to raise rates.”
“He thinks the Fed should be extraordinarily patient about reducing accommodation, as he is not expecting to reach mandates on employment and inflation for 3 years.”
Key Quotes
“Richmond Fed President, Jeffrey Lacker (voter in 2015 FOMC) said on Friday (10 Apr) that there was a substantial amount of support for a June rate hike at the last FOMC meeting. Lacker still saw a strong case for FOMC to raise rates at June meeting as he opined that the Fed should look through fluctuations in data.”
“While he expects strong USD to be a drag on exports, he noted that the strong labor market will drive wages higher.”
“In comparison, Minneapolis Fed President, Narayana Kocherlakota (non-voter in 2015 FOMC) reiterated his view that the Fed should not raise rates in 2015, and that the Fed should wait until 2H16 to raise rates.”
“He thinks the Fed should be extraordinarily patient about reducing accommodation, as he is not expecting to reach mandates on employment and inflation for 3 years.”