FOMC to ultimately attach more weight to continued labour market improvement: Danske Bank

Quotes from Danske Bank:

-Our long-held view is that the Fed will deliver the first 25bp rate hike in June this year. We still see a reasonable probability of a hike in June, but acknowledge that the low level of core inflation and disagreement within the FOMC could postpone it to later in the year. The January FOMC minutes showed that there is currently no consensus on the committee on the appropriate lift-off date.

-Even though many indicated that they would rather hike rates "too late" than "too early" there was no exact guidance on the time horizon. We believe that the decision will be data dependent. Here we expect the FOMC to ultimately attach more weight to continued labour market improvement than the low level of inflation.