Fed: No doubt about raising rates - Natixis

Jean-François Robin, Research Analyst at Natixis, suggests that the Fed will be raising its rates in 2 weeks and there’s no doubt about this, and the real question is now more about what will happen afterwards.

Key Quotes

“We are still anticipating another 25bp movement after the one in June. The market has completely priced in the 14/06 hike, but has only priced in 2 rate hikes between now and next year after that. The DOTS have to be watched closely to see if the Fed will maintain its 2 expected hikes this year and the same number next year. In this case, the market could undergo correction with the steepening in Bors and OISs.”