US Fed unlikely to hike rates in 2006

06/06/06 - First Berlin

NEW YORK, June 6 (newratings.com) - Analysts at First Berlin say that the Fed is unlikely to raise interest rates this year.

In a research note published this morning, the analysts mention that the Fed’s moves in the near future depend on the forthcoming data. Consumer sentiment and business investment are likely to decline in 2H06, which would not support monetary tightening, the analysts say. The Conference Board’s consumer confidence index fell from 109.6 to 103.2 on account of concerns surrounding the US economy’s near-term prospects, the labour market conditions and consumers’ earning potential, First Berlin adds.