Fed Reserve Bank of Dallas President Robert Kaplan looks for more than two interest rate hikes this year, including the rate hike in March. Though the inflation numbers didn’t look promising, Kaplan firmly believes on two rate hikes for this year. Fed member Brainard confirmed the chances of the rate hikes and stated that it will happen shortly.

The economy seems to be looking good for this quarter and we expect it to grow stronger for the rest of the year. Investors and trade analysts see 80% chance of a rate hike in the Fed’s June 13-14th meeting. Particularly, the Consumer Spending Statistics increased this month when compared to the last four months. With a strong economy and consumer spending, Fed officials await the interest rate hikes in June. From a trading standpoint, we expect the US dollar to gain strength in the following days.

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The information and views expressed herein are NoaFX’s opinion about the market and no responsibility (or liability) is accepted for any factual errors or trading decisions made by traders based on this opinion. The contributor might be involved in trading or hold some positions in the market and accepts no liability arising out of the above information.

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