Summary
NEW YORK (HedgeWorld.com) - As the market remains divided over the next move by the Federal Reserve Bank, Barclays Capital is betting that the Central Bank will keep the rates unchanged at today's meeting [Jan. 31], due to the remaining risk of inflation and the healthy pace of the economic growth.
This morning, the release of the GDP growth figures for the fourth quarter was somewhat of a surprise for the market, with a 3.5% growth rate for the GDP, higher than expected. Such result though is in line with Barclays' forecast: The economy is growing faster than the market perceives.See the full content of this document
Extract
Barclays: Fed Will Maintain Inflation Focus
For 2007, the bank predicted an acceleration of economic growth in the first half of this year, which will trigger the Fed to hike rates. This view contrasted with a sign...
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