While its forecast is for a rise in June, Schroders believes there is a strong case for the Fed going earlier.
“The Fed is keen to normalise interest rates and, with the personal consumption deflator expected to come in at 2% for January alongside low unemployment, there is an argument for another 25 basis point rise later this month,” says chief economist Keith Wade.
“There is a danger that, by waiting for June, softer data may close the window on a rate move. All eyes will now be on Janet Yellen when she speaks in Chicago on Friday – her last opportunity to comment publicly ahead of 15 March.”
