Barclays now sees Fed hiking in September
Economists at Barclays joined Goldman Sachs in abandoning the call for a June rate hike.
The market had largely abandoned the idea of a June hike when last week's FOMC statement didn't offer any hawkish hints. Fed funds futures implied a 10% chance of a hike before the jobs report and that fell to 4% afterwards.
(The Fed hike ghosts are busted)
Here's what Barclays said:
"Based on the weaker-than-expected employment report and the emphasis in Federal Reserve communications on the benefits of moving cautiously, we have revised our outlook for the path of monetary policy. We now only expect one rate hike in 2016, in September, down from two hikes previously, as we believe it will take longer for policymakers to accumulate sufficient evidence that economic and labor market activity is rebounding after a soft start to the year. We also believe some FOMC members would prefer to see the outcome of the UK referendum before moving to hike rates again."
