ICYMI from Financial institution of America on what they count on from the Federal Open Market Committee (FOMC) and Powell afterwards at his press convention:
BoA argue that the principle thrust from the FOMC might be a 3 parter:
- “policy needs more time,
- the next move is most likely a rate cut,
- and the committee is in a wait-and-see mode until the Fed has more clarity on inflation,”
As for coverage strikes:
- count on quantitative tightening to be slowed by lowering the month-to-month cap of Treasurys redemption to $30 billion from $60 billion
And, from Federal Reserve Chair Powell:
- We suspect Powell is snug with the substantial pricing out” of interest-rate cuts this year and “may even possible discover it laborious to ‘out hawk’ the market.”
***
The Federal Open Market Committee (FOMC)’s coverage determination might be launched on Wednesday Might 1 at 2 pm US EDT (1800 GMT) with Fed Chair Jerome Powell following up along with his press convention at 2:30 pm (1830 GMT).
Earlier previews:
- FOMC meet this week: “the most interesting news about this meeting will come on 22 May”
- “Fed has simply run into a brick wall”
- expect a hawkish Fed and Powell
- Fed cuts are not imminent
This text was written by Eamonn Sheridan at www.forexlive.com.
