Economics
Two of Fed’s Own Primary Dealers Warn Shock Hike Awaits Markets
- Barclays, BNP see September hike even as futures show 22% odds
- ‘There is no perfect time’ to raise rates, BNP’s Rosner says
Barclays, BNP Warn of Shock Hike From Fed
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There’s uncommon dissent in the ranks of the Federal Reserve’s primary dealers over the central bank’s interest-rate decision this week.
Two of the Fed’s 23 preferred bond-trading partners -- Barclays Plc and BNP Paribas SA -- are betting against their peers and the bond market by forecasting officials will raise rates Wednesday. It’s the first time more than one dealer has gone against the consensus during the week of a policy meeting since last September, data compiled by Bloomberg show. Economists at both banks say traders have too steeply discounted officials’ intent to hike after the Fed has remained on hold for longer than expected.