Reporting by Subhadeep Chakravarty in Bengaluru; Editing by Krishna Chandra Eluri and Shilpi Majumdar
Citigroup now expects Fed to hike interest rate in November
The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo Acquire Licensing Rights
Sept 14 (Reuters) – Citigroup now expects the U.S. Federal Reserve to raise its key interest rate by 25 basis points (bps) in November, compared with its previous forecast of a September hike.
According to Citigroup economists led by Andrew Hollenhorst, the recent inflation data raised expectations that the Fed would “pause” during the policy meeting next week.
“The slightly stronger-than-expected reading is likely to keep the Fed leaving the 2023 median ‘dot’ unchanged,” Citigroup economists wrote in a note dated Wednesday.
Traders see a 97% chance of the Fed holding rates in September and a near 60% likelihood of a November pause, the CME FedWatch Tool data showed.
Our Standards: The Thomson Reuters Trust Principles.
Source: reuters.com
The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo Acquire Licensing Rights
Sept 14 (Reuters) – Citigroup now expects the U.S. Federal Reserve to raise its key interest rate by 25 basis points (bps) in November, compared with its previous forecast of a September hike.
According to Citigroup economists led by Andrew Hollenhorst, the recent inflation data raised expectations that the Fed would “pause” during the policy meeting next week.
“The slightly stronger-than-expected reading is likely to keep the Fed leaving the 2023 median ‘dot’ unchanged,” Citigroup economists wrote in a note dated Wednesday.
Traders see a 97% chance of the Fed holding rates in September and a near 60% likelihood of a November pause, the CME FedWatch Tool data showed.
Reporting by Subhadeep Chakravarty in Bengaluru; Editing by Krishna Chandra Eluri and Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles.
Source: reuters.com
/cloudfront-us-east-2.images.arcpublishing.com/reuters/3OL2JUVW2NKO7IEQO57NSCSNFU.jpg)
/cloudfront-us-east-1.images.arcpublishing.com/gray/MDCVRZ3GRFG3PJYFJJABC4JQZY.png)