Fed to raise rates in June? - Nomura

Analysts at Nomura explained that the recent comments by Federal Reserve officials have not changed their expectations for upcoming FOMC decisions.

Key Quotes:

"We still expect the FOMC to raise rates at its June meeting and to announce changes to its balance sheet policy late in the year. Market expectations for a June hike dropped somewhat after news of Comey’s memo broke. However, those expectations fully recovered by the end of the week."

"Attention now shifts to the release of the minutes from the 2-3 May meeting (24 May) and a number of upcoming FOMC speeches before the blackout period begins on 3 June. With market expectations firmly anchored for a June hike, there might be fewer pre-blackout Fedspeaks in coming weeks than there was before the March FOMC meeting."