HALISTER1: Fed Now Seen Hiking in Sept. Instead of June, TD Says

Fed Now Seen Hiking in Sept. Instead of June, TD Says

(Bloomberg) -- FOMC statement released Wed. suggests “little urgency to set up for a hike” in June, TD strategists David Tulk and Millan Mulraine write in note.
  • Nothing in statement “sets up a June hike”
  • TD pushes back its expectation for next hike to Sept. from June
    • Before FOMC mtg, TD had expected hikes in June and Dec.
  • Tone of statement reflects data dependency, along with less concern on “external front balanced by an increase in domestic worries”
  • “Case for caution remains”
  • Recommends 10Y TIPS breakevens, says nominal 10s should stay in 1.65%-2% range
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
David Tulk (Toronto-Dominion Bank/The)
Millan Mulraine (TD Securities USA LLC)

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