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1 Sep 2015
Fed to make good on the pledge - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the bottom line is that the U.S. economy remains on solid footing.
Key Quotes:
"However, uncertainty related to global growth prospects poses a clear downside risk to inflation. The Fed appears cognizant of that with the case for a September liftoff weaker as a result."
"Nonetheless, we don’t believe the Fed will overreact to short-term developments, with Dudley himself unsure whether the recent moves are a “temporary adjustment or something more persistent.” The Fed has long telegraphed its desire to raise rates this year, and unless the global macro backdrop deteriorates substantially, we expect the Fed will make good on that pledge."
Key Quotes:
"However, uncertainty related to global growth prospects poses a clear downside risk to inflation. The Fed appears cognizant of that with the case for a September liftoff weaker as a result."
"Nonetheless, we don’t believe the Fed will overreact to short-term developments, with Dudley himself unsure whether the recent moves are a “temporary adjustment or something more persistent.” The Fed has long telegraphed its desire to raise rates this year, and unless the global macro backdrop deteriorates substantially, we expect the Fed will make good on that pledge."