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30 Jul 2014
FOMC; Tic-toc, but don’t expect a lot - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that the FOMC meeting that is due shortly is likely to be close to a non-event.
Key Quotes:
The action is universally anticipated: another $10 bln in tapering”.
"The economy has proceeded along lines the Fed expected, and this means that its assessment is likely to be simply tweaked. The housing market remains disappointing, and the Fed may acknowledge this."
"The other wrinkle may be a hawkish dissent by Dallas Fed Fisher. Fisher’s op-ed piece in the Wall Street Journal, earlier in the week, and during the traditional quiet period ahead of an FOMC meeting, seemed to have tipped his hand."
"Moreover, there has been reports indicating that he will likely step down next spring and is being considered for a position as Chancellor of the University of Texas. Lastly, in this period, we suspect the FOMC minutes may be more interesting as surely the Fed will be discussing the post-taper period."
Key Quotes:
The action is universally anticipated: another $10 bln in tapering”.
"The economy has proceeded along lines the Fed expected, and this means that its assessment is likely to be simply tweaked. The housing market remains disappointing, and the Fed may acknowledge this."
"The other wrinkle may be a hawkish dissent by Dallas Fed Fisher. Fisher’s op-ed piece in the Wall Street Journal, earlier in the week, and during the traditional quiet period ahead of an FOMC meeting, seemed to have tipped his hand."
"Moreover, there has been reports indicating that he will likely step down next spring and is being considered for a position as Chancellor of the University of Texas. Lastly, in this period, we suspect the FOMC minutes may be more interesting as surely the Fed will be discussing the post-taper period."