5 Stock Market Forecasts Next 6 Months

4. Two More Interest Hikes After July

July was expected to be the last time the FED would hike interest rates as part of the monetary policy tightening spree. Nevertheless, with the US economy steadying and remaining resilient, two more interest rate hikes are predicted over the next six months.

According to former Federal Reserve Vice Chairman Roger Ferguson, inflation remaining high and failing to edge below the 2% level could force the FED into further hikes. Two more hikes could come into play on the strong economy, as already depicted by a solid jobs market and impressive retail sales and manufacturing data.

“It is far from over that they are getting inflation definitely down to that 2% number and I think part of the problem is inflation might still be stuck a little higher than 2% forcing may be to do not one more after July but possibly two if that is what the data calls for,” said Ferguson.