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18 Mar 2015
All eyes on the FOMC today – UOB Group
FXStreet (Edinburgh) - Analysts at UOB Group assessed the probable scenario from today’s key FOMC meeting.
Key Quotes
“Essentially, the markets are expecting FOMC Chair Janet Yellen to remove the Fed’s pledge to be “patient” on raising interest rates within the statement and the markets expect it to be replaced with some form of data-dependent language on the need for “reasonable confidence” but there are also some market watchers who think that nothing will be used to replace it”.
“The crux is whether the statement is crafted well enough to allay market concerns about impending rate hikes”.
“Yellen needs to convey the message to have the flexibility to tighten when conditions are ripe in line with her efforts to shift away from calendar based guidance, and to be data-dependent but that it is not happening in the next meeting in April”.
“Markets will also be watching if Yellen addresses the Fed’s view on the recent US dollar strength, most likely during the press conference but not in the FOMC statement".
Key Quotes
“Essentially, the markets are expecting FOMC Chair Janet Yellen to remove the Fed’s pledge to be “patient” on raising interest rates within the statement and the markets expect it to be replaced with some form of data-dependent language on the need for “reasonable confidence” but there are also some market watchers who think that nothing will be used to replace it”.
“The crux is whether the statement is crafted well enough to allay market concerns about impending rate hikes”.
“Yellen needs to convey the message to have the flexibility to tighten when conditions are ripe in line with her efforts to shift away from calendar based guidance, and to be data-dependent but that it is not happening in the next meeting in April”.
“Markets will also be watching if Yellen addresses the Fed’s view on the recent US dollar strength, most likely during the press conference but not in the FOMC statement".