US economy gaining momentum - ING

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - James Knightley, analyst at ING Bank NV explained that in his view, the US economy is gaining momentum.



“… as highlighted by this week's jobs, GDP and confidence data, while inflation looks set to become more of an issue”.



“Wages will eventually respond the improvements in labour demand while we are already starting to see property rental indices rising as a lagged response to significant house price gains”.



“Given shelter accounts for close to a third of the CPI index, we see the risk of a significant pick-up in inflation readings towards the end of the year”.



“With Fed members starting to show clearer splits in their respective assessments we suspect the September FOMC statement will see a additional amendments to the Fed's statement regarding the economy and possibly the outlook for policy. We see the Fed's asset purchases concluding in October with the first rate hike occurring in April next year”.



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