Fed: On track for another modest tightening in September – RBS

Analysts at Royal Bank of Scotland suggest that judging by the latest Fed minutes (for the 1 August meeting), another modest tightening is likely in September. 

Key Quotes

“US growth remains strong, driven by consumer spending and business investment, and the Fed is increasingly confident that the 2% inflation target will be achieved.”

“Rising trade tensions pose a downside risk to the US economy but domestic factors continue to drive monetary policy.”

“All this suggests the Fed will maintain its gradual tightening stance in the coming months as it heads towards a neutral stance.”