EY-Parthenon Sees Fed Holding Rates Steady Through Year-End
JH Kim
Summary
- EY-Parthenon said it expects the Fed to keep its benchmark interest rate unchanged through the end of the year even after the U.S. nonfarm payrolls report.
- EY-Parthenon said the labor market remains stable, making it unlikely that July's increase in nonfarm payrolls will alter the Fed's policy stance.
- EY-Parthenon said additional rate hikes would be difficult to justify without broad and persistent inflation pressures or a meaningful reacceleration in job growth.
Forecast Trend Report by Period
EY-Parthenon expects the Federal Reserve to keep its benchmark interest rate unchanged through year-end even after the U.S. nonfarm payrolls report due on Aug. 7.
Walter Bloomberg reported on Aug. 6 that Wall Street expects July nonfarm payrolls to rise by 83,000. EY-Parthenon said the labor market remains stable, meaning the data is unlikely to change the Fed’s policy stance.
Additional rate increases would be difficult to justify unless broad and persistent inflation pressures emerge or job growth meaningfully reaccelerates, the firm said.
JH Kim
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