A Dovish Hike--Positive For Inflation

March 16, 2017 BY Chun Wang
PDF Download: PDF icon Mar2017.pdf

The dovish rate hike is a positive for inflation and credit. A hawkish message right now would have been quite detrimental and self-defeating in terms of realizing two more hikes later this year. We believe achieving sustained 2-3% inflation could be harder than most people expect going forward. Overall, we are encouraged by the dovish hike but we think the real test for inflation is when the base effect starts to wane.

 

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