Snapshot: The US central bank’s more dovish stance has been welcomed by markets. We forecast another rate rise this year if activity picks up as expected.
We still see scope for further interest rate rises from the Fed this year, following yesterday’s 25 basis point hike at the March meeting of the FOMC.
Core inflation looks likely to accelerate further, putting pressure on the Federal Reserve to keep tightening policy.
In the first part of our series of articles assessing the outlook for next year, Keith Wade discusses whether the Goldilocks combination of strong growth and low inflation can continue in 2018.
Latest payroll data sees jobs market rebound and keeps the prospect of a further rate rise in December on the cards. But wages stay subdued.