Fed set to raise rates – Lloyds Bank

By FXStreet FXStreet (Córdoba) – According to analysts from Lloyds Bank, the Federal Reserve is ready to raise rates for the first time since 2006 and if it stays on hold it would probably be a major blow to the its credibility.

Key Quotes:

“The coming week’s US monetary policy meeting (Wed) could be of historic importance. The FOMC is expected to raise interest rates (by 0.25%) for the first time since June 2006. The recent slide in oil and commodity prices as a whole has prompted some speculation that the FOMC may back off, as they seemingly did in September. However, this time around the FOMC seems to have sent a more emphatic message.”

“In the statement after its October meeting, the FOMC strongly hinted that interest rates would be raised in December unless there was a deterioration in economic conditions. Most Fed speakers since then have reiterated that message. In particular, the labour market, which the FOMC has highlighted as the key area it would be watching, has been much stronger than expected. With financial markets now putting close to an 80% probability on a rate rise, it would probably now be a major blow to the Fed’s credibility if it …read more

Source:: FX Street