Current level of underemployment in US not enough to keep rate hikes off the table: Danske Bank

Quotes from Danske Bank:

-Given the extremely low level of the fed funds rate, the current level of underemployment is not enough to keep hikes off the table, in our view. It rather serves as a reason why the Fed will initially keep the pace of hikes slow.

-Remember, at the time the 2004 hiking cycle started, the fed funds rate was 1.0% and therefore closer to the long-term neutral fed funds rate than is currently the case.