Strong data on sales and consumer prices may mean the Fed will raise interest rates sooner than expected, predicts one finance giant
JPMorgan is predicting that the Federal Reserve’s next interest-rate hike will come in May.
The banking giant had predicted a rate hike in June, but revised its projection after strong data on January retail sales and consumer prices, according to a Reuters report. More aggressive rhetoric from some Fed officials also played a role in the decision.
“We are pulling forward our expectations for the next Fed rate hike from June to May; we continue to look for two hikes this year, in May and September,” Michael Feroli, a JPMorgan economist, wrote in a research note.
The Fed held interest rates steady at its meeting earlier this month, citing a desire to see a stronger labor market and a return to 2% inflation before enacting a hike.
