The Fed should hold a bias for hikes – SocGen

The Fed left key interest rates unchanged. The dot plot has a more hawkish tilt, economists at Société Générale report.

Option for hike retained through year-end

We side with no further tightening. 

While inflation remains elevated and employment markets tight, the Fed should hold a bias for hikes. 

The communications accompanying the FOMC meeting – the statement, the summary of economic projections and the press conference – signal a modestly higher chance of one more hike. 

Data dependency remains.

See: The Fed’s updated guidance should reinforce the USD’s upward momentum in the near-term – MUFG