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July 07, 2015 at 06:33 PM
(Bloomberg) — The Federal Reserve’s interest-rate increase keeps getting postponed.
The U.S. central bank probably won’t raise borrowing costs until the first quarter of next year, based on a Morgan Stanley index that tracks expectations for the move. Three months ago, the gauge projected a shift in December. The Fed is scheduled to issue the minutes of its June 16-17 meeting Wednesday in Washington.
Analysts are pushing back their Fed forecasts as Greece struggles to stay in the euro currency union and as Chinese shares tumble, threatening global economic growth. Treasuries are climbing in July for the first time in four months as investors seek the relative safety of U.S. debt.
“Greece has been a headache,” said Park Sungjin, head of investment management in Seoul at Meritz Securities Co., which has $7 billion in assets. “The timing of the Fed rate increase will be postponed. The situation helps the Treasury market.”
