The more notable shift for investors was the fact that the number of FOMC members that believed a more aggressive
rate hike path will be necessary down the road increased.
They are on a normal
rate hike path.
The Fed looks to provide some insight into
their rate hike path as we decipher the recent testimony from Jay Powell.
While this move will likely cause some anxiety, we view the chances of a significant inflation overshoot relative to target as low and think that the Federal Reserve can and will stay on a gradual
rate hike path (our base case).
Fed policymakers» confidence in their outlook will be on show on Wednesday when they release their latest set of quarterly projections on growth, unemployment and inflation as well as their expected
rate hike path.
Bill Gross says he is amazed bonds didn't react more significantly to the latest Fed
rate hike path.
Not exact matches
«The market started reacting to the suggestion that the
path [of
rate hikes] could be shifting higher, based on all the positives mentioned by Powell,» said George Goncalves, head of fixed income strategy at Nomura.
The 2.9 % rise in December average hourly earnings «might put a little bit more pressure on the Fed to accelerate the
path [of interest
rate hikes], but I really don't think it's going to be that significant a push,» said Dan North, chief economist at Euler Hermes North America.
Josh Nye, an economist with RBC Economics Research, said it's unlikely metals tariffs on their own would drastically change the central bank's thinking about whether it stays on a
rate -
hiking path.
«Over the past few months, they've reopened the
path for another
rate hike,» he said.
Markets expect the Fed to
hike interest
rates three times this year, and Powell's remarks seemed to indicate the central bank remains on a tightening
path.
«The Fed is signaling it is keeping to the gradual
path and not
hiking rates at faster pace (at least for now),» Alvin Liew, senior economist for UOB in Singapore, said in a note.
It's the penultimate report before the Fed
rate hike decision in June, and if it shows significant deterioration in job gains — and yet another lackluster gain in wages — the Fed may have to back off its monomaniacal
path toward higher
rates.
Yellen is still stressing that the
path of interest
rate hikes will continue to depend on incoming data.
While the central banker is expected to hold off from raising borrowing costs for a second straight policy decision on Wednesday, and retain a degree of prudence in his rhetoric, Poloz will probably face mounting pressure to return to the
rate -
hike path soon, with inflation and growth beginning to pick up.
Zentner says the dot plot released following the June meeting will show the
path of
rate hikes «starts later and shifts lower» than the March chart.
David Kotok, chairman at Cumberland Advisors, discusses the Fed's policy
path next year, the impact of the
rate hikes on the bond market and his outlook for 2016.
The central bank also signalled that the gradual
path of
rate hikes will stay.
Rate hikes are akin to the failed policy of trapping and relocating elks in hopes of containing overgrazing, and the current policy
path will continue to fuel non-bank risk - taking and further erode markets» ability to brace for shocks
A quarter - point
hike in the US federal funds
rate might provide a welcome dose of clarity to Asian markets and emerging markets more generally, but any indication that the
path of further increases will be other than short and shallow could yet have a further disruptive effect.
Long - term interest
rates are influenced by a number of factors in addition to expectations of a central bank's short - term interest
rate path (the expected timing and pace of interest
rate cut /
hikes).
As pointed out in a new BlackRock Bulletin on «The Fed's New
Path,» the Fed said it expects
rates to stay subdued and the
hiking cycle to be gradual.
But they do think it could edge a bit higher and put the Fed on a
path for four
rate hikes this year.
While the majority of the policymakers do support faster
rate hikes, some policymakers are expressing doubts over the
path of...
The first
path would closely resemble the so - called «dot - plot»
path, where the Fed delivers the very
rate hikes that are implied in its forecasts.
The Fed is on its
rate -
hike path, which pushes up shorter - term yields, and longer - term yields are following with delays and in wild spasms.
While the Fed's «median dot»
rate forecast continued to point to a total of three
rate hikes this year, it projected a slightly steeper
path for its policy
rate in 2019 — 2020.
The US Federal Reserve in particular has been paving the
path for
hiking interest
rates and many investors expect at least three further
rate hikes this year.
«It remains to be seen whether a more aggressive
path of
rate hikes will be implemented in 2017,» says Lantz.
The increase marked the third since December 2015, and at least two or more
rate hikes are expected during the rest of the year as the Fed continues its
path of «normalization of
rates.»