Commerzbank: Falling Oil Prices to Reduce Inflation, Make Fed Rate Hikes Unlikely

Commerzbank's Bernd Weidensteiner argues that market expectations for more Fed tightening may be unwarranted. Falling oil and gasoline prices are set to lower U.S. inflation, thereby easing pressure on the central bank to raise rates further.

The view contrasts with market pricing that still implies some chance of additional hikes. Weidensteiner's analysis suggests that the disinflationary effect from energy costs will be enough to keep the Fed on hold.