Fed: Interest rate hike should still come in 2016 – Commerzbank

Research Team at Commerzbank, suggests that based on the real economic data, the Fed should still tend towards rate hikes.

Key Quotes

“Possible dates for a rate rise are September and December, as press conferences will then be held. The slow increase in inflation pressure will allow the Fed to be unhurried. As the outlook up to mid-September will presumably not be clear enough by then, the next rate hike is more likely to happen in December in our opinion, followed by two further steps in the coming year. This would still be much more than the market currently expects. Consequently, we predict a somewhat stronger dollar and slightly higher yields in the medium term.”