Peter Hooper, chief economist at Deutsche Bank Securities, comments in a radio interview with Bloomberg
Hooper argues that a strengthening US economy means that the Fed will raise rates at least four times this year and that «risks are moving towards five».
He also cites Fed’s Lael Brainard’s comments here yesterday as an «important development» as she suggested that the pace of rate hikes may need to accelerate/quicken should the Fed’s current forecasts be wrong.
Well, the market is still debating between three and four rate hikes but Hooper has already gone one up on that. Five is a little bit much in my view, as that would leave the Fed hiking once every two months from this point on.
I’m interested to know what our readers have to say on the matter. What do you think? Three? Four? Five? Rate cut?