Fed Call: No rate hikes for the foreseeable future - RBS

Research Team at RBS, notes that there were no major surprises in last week's FOMC statement and as expected, the characterization of the economy was upgraded.

Key Quotes

“More importantly, the Fed reintroduced language around "risks" saying, “near-term risks to the economic outlook have diminished." In our opinion, this marks a small first step in the sequencing of language used ahead of a rate hike. While a move in December remains possible (not our current forecast), we feel even more comfortable with our view that a rate hike as soon as September is unlikely.

The next few employment reports are likely to be more informative to the outlook than the latest FOMC statement. On that score, we look for another relatively strong job gain in July, with nonfarm payrolls forecast to have advanced by 195,000.”