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This Round Of Interest Rate Hike Is Likely To Come To An End.

2016/8/7 10:23:00 23

Interest Rate IncreaseFundamentalsExchange Rate

The non-agricultural data released today are striking, adding 255 thousand non-agricultural workers, far exceeding the expected 180 thousand.

Analysts believe that the Fed will increase interest rates.

Debt king Gross believes that today's data show a good job growth, and the Federal Reserve is expected to raise interest rates in December.

For the economic outlook, he said,

economic growth

The decline in savings stems from recession. If the economy is short of consumer spending, it will be in recession. CPI will be between 2% and 2.5% in the next few years.

Royal Bank of Scotland said that although the US unemployment rate is steady and encouraging, the labour force participation rate has increased, but it is estimated that the probability of raising interest rates by the end of the year is less than 50%. If the Federal Reserve chooses to raise interest rates within the year, the possibility of raising interest rates in December will be greater than that in September.

Rick Rieder, chief investment officer of global fixed income, said that the non-agricultural data is robust, and the US economy is better than expected, and the US interest rate is still attractive to other regions.

However, the US Federal Reserve has little chance of raising interest rates before the US election.

PIMCO Mather, the chief investment officer of the US, said it was hard to get orders.

Federal Reserve

The situation remains unchanged.

The window that allows the fed to act is shutting down, and the Fed needs to go ahead.

The Fed will reach its inflation target by the end of the year, and inflation will eventually exceed the target of the Fed.

It is very difficult to make the Fed stand still. Investors should be more alert.

On the eve of the non farm data release, Jon Hilsenrath, a senior journalist with the Federal Reserve news agency, said that if the non-agricultural data exceed 200 thousand people, the Federal Reserve may be in September.

Increase interest

On the contrary, they refuse to move.

Hilsenrath also believes that the Fed's decision to raise interest rates is not limited to non-agricultural data. If the unemployment rate in the US fell to 4.8% in July, the situation in the employment market has improved. This will also prompt the Federal Reserve to take action.

But some analysts believe that this round of interest rate hike is coming to an end.

Guoxin Securities Dong Dezhi analysis, according to the two quarter of non-agricultural employment and wage growth data, the U.S. economy basically reached full employment.

According to historical experience, the Fed's rate hike cycle usually enters the middle and late stages.

Taking into account the potential slowdown in the current US economy and the stagnation of the recovery of the peripheral economies, the Fed is expected to raise interest rates again.


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