Traders bet on delay in US rate rise
The Financial Times
US interest rate traders are betting sharply that lower oil prices, falling inflation and faltering wage growth will delay the arrival of Federal Reserve policy tightening this year.
..."We think it is very difficult to construct a scenario in which the Fed would tighten by midyear in the absence of a perceptible pick-up in wage growth," said Lou Crandall, economist at Wrightson Icap. "The Fed has said it would need to be reasonably confident about its forecast of rising inflation over a one- to two- year period in order to justify a rate hike."