In light of the last FOMC meeting, analysts at Danske Bank now see the Fed to start hiking in September (from June). “FOMC members have in general expressed a preference to err on the side of caution and tighten too late rather than too early. The revisions to the projected fed funds rate path at the FOMC meeting clearly showed that this remains the case”. “This means that the bar for a June rate hike has increased. We will not only need to see strong labour market data but also a rebound in activity data and signs of stabilisation in core inflation or a pickup in wages”. “This is still not impossible with three months of data left before June, but the odds that the FOMC will wait a few more months before lift-off have increased significantly”.