Fed on hold: Uncertainty set to keep Fed sidelined – Danske Bank

Research Team at Danske Bank, suggests that in their view, the uncertainty in financial markets and rising risk of a systemic crisis is likely to keep the Fed from hiking before markets have settled down.

Key Quotes

“We now expect the Fed to keep on hold until the September meeting, as we believe it will take some time before the current high uncertainty on the outlook will clear.

We anticipate the Fed will deliver three hikes in 2017.

We think the Fed will use the upcoming March FOMC meeting to signal a lower trajectory for the Fed funds rate and state that it is on hold for now.”