We are now assuming that, even if the rally in global stock markets continues, some Fed officials will still want to hold off on raising interest rates until October or even December. A September rate hike isn’t out of the question. But New York Fed President William Dudley’s comment last week that that case for a September rate hike was “less compelling” than before was presumably a carefully crafted message. So until we hear otherwise, we have to assume that lift-off has been delayed yet again.
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