Citi says the Federal Reserve won’t hike rates until December pushing forecast back from September
That’s a bold call from Citi because everyone is clamoring for Fed rate hikes at the moment but you have to ask, why?
There is no inflation and with commodity prices low, there isn’t any inflation coming. Heck, even tomorrow Obama will give amnesty to 5 million illegal immigrants — many of whom will take up low wage jobs and drive down labor costs.
US CPI y-y
If you think rate hikes are coming, I ask: Why?
The only good argument I see (and I think it’s a very good one) is to limit some of the risks in lending and the financial system but other than Kansas City Fed President Esther George, I don’t hear anyone at the Fed making that case.
