EFTA Document EFTA01459046

... though slowing inflation and a tightening of financial conditions as the market re-prices the Fed may pause hikes in H2-2016 Expec- tations Implica- tions for the Fed Deutsche Bank Research 2016 Q1 • Inflation to firm-up • Limited adverse impact from first hike on growth • Labour market continues to tighten Q2 Q3 Q4 • Inflation to stabilise, potentially recede ■ Growth and labour market to remain on track ■ Gradual pace to assess impact of hikes on markets, economy ■