Three Rate Hikes From Fed Still Possible This Year

The Federal Reserve may pause in March but would announce three rate hikes of 25bps each per quarter from June, believe Macquarie analysts. Peter Eadon-Clarke and colleagues said in their March 14 research note titled: “The Global Macro Outlook” that global industrial production likely touched its low in December. Goldman had been “more bullish” on that point predicting only recently that the Fed would hike four times, although the firm has dialed back that forecast a bit in recent weeks.

Macquarie: Fed to keep rates on hold till June

Several analysts predicted last December marked the commencement of tighter Fed policy with the first rate hike in a decade. However, overall financial conditions have been tightening since the Fed began to unwind...