Jonathan Golub, chief U.S. market strategist at RBC Capital Markets, explains why he believes the Federal Reserve needs to move on interest rates.

On February 27th, Golub explained on “Bloomberg Surveillance” that

“Inflation expectations are rising, the labor market is tight. The Fed needs to move higher. Whether they move in March or June or May, there going to be moving to try to get ahead of this or back on top of this story. The market would be surprised if it’s in March, but it really doesn’t matter.”

 

The hosts debate when Yellen will raise rates next and the disconnect that began with Greenspan 15 years ago.

Golub makes a final prediction that,

“By the middle of ’18 I think that you’re going to see interest rates at 3.5% or something.”

But warns that,

“…Janet Yellen can say all she wants about March, until she’s willing to take control of this, the market is not going to believe her.”