DAILY BASKET – NEWS COMMENTARY
Will the US Fed Really Raise Interest Rates?
MARSAL COMMENTS: The Fed and most economists were pretty confident about the US economy’s growing strength, and were (and still are) sure that interest rates will be raised in the Fed’s mid-March meeting.
However, month by month, since the beginning of the year, the actual data appearing wasn’t as expected, causing a continuous lowering of the economic forecasts.
Now, the Atlanta Fed has further lowered its forecast to almost rock bottom! The US growth rate for the first quarter is now seen as 1.2% rather than the ambitious 3% in January, and inflation is forecast lower. Another negative indicator is the Wholesale Inventories which also fell to its lowest since Feb 2016.
Will the Fed back down or stubbornly insist on a rate rise?
EFFECT PERIOD: (Short & Medium Term)
IMPACT POTENTIAL: (Negative)