Institutions: Investors are unlikely to give up expectations of a Fed rate hike in the second half of the year

The senior fixed income analyst stated that, on the other hand, the temporary resolution of the Iran conflict has temporarily weakened the momentum of the hawkish monetary policy stance. He said: "If the easing of tensions in the Middle East continues, the likelihood of the Federal Reserve following the European Central Bank in raising key interest rates in the coming months will decrease." LBBW's main forecast scenario remains that the US benchmark interest rate will stay unchanged over the next 12 months.