Maybe Rates Go to 6%
The strategist at Brown Brothers thinks the fed funds rate could go to above 5.5%.
From the Dow Jones Wire
“How about 6%? By not changing its forward-looking language, the Fed signaled that it remains committed to raising rates by 25 basis points at each policy meeting for the near future, says strategist Andrew Burkly at Brown Brothers Harriman. "Although the fixed-income markets are still pricing in a cyclical peak of roughly 5% for fed funds, we continue to expect the peak level will be between 5½% and 6%." The bottom line is that "data-dependent" means the Fed will continue to raise rates until the data gives a compelling reason not to, Burkly says.”
From the Dow Jones Wire
“How about 6%? By not changing its forward-looking language, the Fed signaled that it remains committed to raising rates by 25 basis points at each policy meeting for the near future, says strategist Andrew Burkly at Brown Brothers Harriman. "Although the fixed-income markets are still pricing in a cyclical peak of roughly 5% for fed funds, we continue to expect the peak level will be between 5½% and 6%." The bottom line is that "data-dependent" means the Fed will continue to raise rates until the data gives a compelling reason not to, Burkly says.”
posted by Little_Silvered at 5:56 PM
1 Comments:
The FED also changed the wording of his statement to include a comment concerning commodity prices.
Thus, he has just another reason to keep bumping up rates (we know oil, metals, etc. not getting any cheaper).
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