Although the Fed doesn't appear to be in any "immediate hurry to act," Bob Doll, chief equity strategist for Nuveen, believes interest rate increases will begin in 2015, he wrote in his weekly commentary on Monday.
The Federal Reserve dropped its pledge to be "patient" in raising interest rates, according to a statement issued March 18. Doll believes that will happen at the September policy meeting, not in June as others have speculated.
"Our view is the Fed is reacting to the strong upward trend of the dollar, muted wage increases and signs that economic growth has become sluggish," he wrote. "Federal Reserve officials understandably want to retain some flexibility, but we believe rate increases at some point over the coming months are almost inevitable."
Doll noted that with the likelihood of increased rates later this year, the "reflation banner is being passed from the U.S. to the euro area and Japan."
