24 Feb Fixed Income Perspectives – ‘Is March Now In Play for the Federal Reserve?’
Posted at 14:15h
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Voya Investment Management – Fixed Income Perspectives – February 2017
While headlines have been dominated by policy banter from the Trump administration, markets have stayed resilient due to prospects of higher growth from expectations of tax cuts, deregulation and fiscal policy, as well as from continued strong economic data. Concurrently, U.S. inflationary pressures continue to rise, keeping the already bright spotlight squarely on the Federal Reserve. As previously noted, we believe that the Fed will continue a cautious pace of rate normalisation guided by market expectations. We explain why we maintain this view despite recent market developments that suggest the next interest rate hike could come in March.