Fed rates: September hike on the cards – KBC

FXStreet (Barcelona) - The KBC Bank Research Team sees the current slowdown in labour market as temporary, and forecast a Fed rate lift-off from September.

Key Quotes

“Despite the poor March payrolls, the trend in the US labour market remains positive and we believe that the slowdown in payrolls is temporary. As growth should pick up again, we expect the labour market to extend its improvement and hope to see signs in the coming quarters that wage growth is picking up. While the Fed will probably hold off a first rate hike in June and July, we believe labour market conditions will allow a first move in September.”