“The safest course for the Fed is to go with the market pricing of an increase by 25 basis points”, Zhiwei Ren, MD & Portfolio Manager at Penn Mutual Assets Management says. “The Fed can’t really have a strong belief in this market, in my opinion”
Goldman Sachs adds that since returning inflation to 2% is a medium-term objective, a halt in the fight against inflation “should not be such a concern.”