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After last week's better than expected......>

US VIEW
US VIEW: After last week's better than expected Aug inflation data, Barclays
analysts expect the Fed to keep chances for a hike at the December 14 FOMC alive
as data lends "support to FOMC members who have argued that the soft patch in
inflation is transitory." However, Barclays says it's "possible that the Fed may
lower its inflation forecasts given that it is projecting core PCE to return to
1.7% y/y by the end of 2017. We doubt the dots for 2018 will be forecast to be
shallower, but the dots for 2019 and 2020 could drift lower."

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