6 Apr 2015
Barclays: Expect a September rate hike by the Fed – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Barclays’ view on the labour market and rate lift-off post the release of the disappointing US March payrolls.
Key Quotes
“While the 126k rise in March payrolls was a disappointment relative to our expectation, we do not view this as the new trend. We look for monthly payroll growth to average 200-225k over the remainder of the year as economic activity moderates to a more sustainable trend.”
“We do not view faster wage growth as a precondition to Fed tightening, although more rapid wage growth would certainly make the committee’s decision easier.”
“In her public remarks, Fed Chair Yellen has said the decision to raise rates would, in part, be based on a forward-looking assessment of labor markets, saying that Fed policymakers need to be reasonably confident in their expectation that further improvement in labor markets would yield faster wage growth. We continue to forecast the first rate hike in September.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“While the 126k rise in March payrolls was a disappointment relative to our expectation, we do not view this as the new trend. We look for monthly payroll growth to average 200-225k over the remainder of the year as economic activity moderates to a more sustainable trend.”
“We do not view faster wage growth as a precondition to Fed tightening, although more rapid wage growth would certainly make the committee’s decision easier.”
“In her public remarks, Fed Chair Yellen has said the decision to raise rates would, in part, be based on a forward-looking assessment of labor markets, saying that Fed policymakers need to be reasonably confident in their expectation that further improvement in labor markets would yield faster wage growth. We continue to forecast the first rate hike in September.”
This content has been provided under specific arrangement with eFXnews.