Will they or won't they? Deutsche Bank and RBC weigh in with their thoughts
Deutsche Bank is out with their thoughts on the Fed. They say:
- The issue for the Fed is whether policymakers will go against the markets expectations of no change in policy
- "we are moving towards the markets view"
- "While we have not made any change to our September rate forecast (25 bp increase), this projection is under review"
Meanwhile at RBC, they say:
- the employment report strengthens the narrative of rapidly declining labor market slack and firming wage trends.
- If the equity markets calm down between now and the September meeting, and the diminished labor slack/rising risks of wage pressures become more of the topic du jour, we see no reason the fed would take a pass on raising rates
They add that it is becoming more difficult to promote easy monetary policy