Factors Likely to Shape Fed’s Interest Rate Path in H2 2018

Factors Likely to Shape Fed’s Interest Rate Path in H2 2018

By Blu Putnam, Chief Economist, CME Group

Video Highlights

  • Fed could hike rates at least once in H2 2018 as core inflation edges up
  • A second rate increase in H2 is possible but dependent on inflation data
  • Fed aiming for ‘rate neutrality,’ when fed funds rate equals core inflation
  • 10-Year Treasury Note at 3% could be a floor, not ceiling, if inflation strengthens

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