BNP IP: US Monetary Policy Outlook - Delayed Tightening Amid Moderating Growth Prospects

• The FOMC is likely to raise the target range for the federal funds rate by just 50 basis points in 2016. 

• The next rate rise is likely to be delayed until September, as the Fed takes stock of more restrictive financial conditions and signs of waning growth momentum.

• GDP growth is likely moderate to a trend-like pace of around 1.75 percent this year, though there are downside risks. 

• With less progress towards closing the output gap, the risks of an inflation overshoot are even lower than the Committee perceived at the time of liftoff.

Der komplette Marktkommentar als PDF-Dokument.