Data Could Argue for Fed Rate Hike, but Fed to Stay on Hold
Dow Jones14:06
0606 GMT - U.S. inflation remains uncomfortably above the Federal Reserve's 2% target, and based on economic data, another hike would not be unreasonable, says Carmignac's Kevin Thozet in a note. Hence, reasons for the Fed to likely stay on hold Wednesday should be sought elsewhere, the member of the investment committee says. "Financial conditions have tightened, equities have wobbled and stress has appeared at the fringes of credit markets," he says. These factors provide reason for the Fed to pause, without necessarily signaling a shift toward a more accommodative stance, Thozet says.
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