Fed: Dovish members will continue to favour a defensive stance – RBC Economics

Research Team at RBC Economics, notes that the advance estimate of Q2/16 US GDP growth disappointed with a 1.2% gain despite a significant jump in consumer spending.

Key Quotes

“Business and residential investment both posted declines. With growth of just 1.0% in H1/16, we expect some of the more dovish Committee members will continue to favour a defensive stance, leaving rates steady until signs of inflationary pressure emerge.”