Economics
Three of Fed’s Own Primary Dealers Warn Hikes on Hold Until 2017
- HSBC, RBC, RBS say bet against bond-market consensus
- Fed fund futures show 71% chance of rate increase by year-end
Why Three Dealers See a Next Fed Rate Hike in 2017
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Three of the Federal Reserve’s own primary dealers are warning bond traders that a growing consensus the central bank will raise interest rates by year-end is misguided.
While none of the 23 banks that trade with the Fed expect a hike at the conclusion of Wednesday’s meeting, HSBC Holdings Plc, Royal Bank of Canada and Royal Bank of Scotland Group Plc remain steadfast that policy makers will choose to hold off on raising rates at the Fed’s Dec. 14 meeting as well.