December 14, 2016 / 8:00 PM / a year ago

Barclays sees early U.S. rate increase unlikely

NEW YORK (Reuters) - The U.S. Federal Reserve is unlikely to raise short-term interest rates in early 2017 if the U.S. economic expansion slows and the Trump administration introduces tariffs that would hurt American exports, Barclays economists said on Wednesday.

The logo of Barclays is seen on the top of one of its branch in Madrid, Spain, March 22, 2016. REUTERS/Sergio Perez/File Photo

“In our view, the slowdown in growth early in the year associated with tariffs would preclude an early year rate hike,” Barclays’ U.S. economists Michael Gapen and Rob Martin wrote in a research note after the Fed, as expected, raised rates by a quarter point, to 0.50 percent to 0.75 percent, earlier Wednesday.

Reporting by Richard Leong

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