Dealer Thoughts on FOMC

June 17th, 2015 3:33 pm | by John Jansen |

Via Bloomberg:

: ‘Dovish’ Fed Still May Hike This Year
2015-06-17 19:15:45.543 GMT

By Katherine Chiglinsky
(Bloomberg) — FOMC policy statement seemed more dovish and
reflected notion that Fed would likely begin hiking rates later
this yr, according to some economists/strategists.

* For text of policy statement, see here: for side-by-side
comparison with previous statement, see here
* Capital Economics (Paul Ashworth)
*
* Downward revisions to Fed’s 2015 GDP growth projections
“mainly reflect the unexpected weakness in the first
quarter,” as changes “were balanced by a much more
upbeat assessment of the economy’s performance” in
statement
* Fed remains on track for Sept. rate liftoff
* Story link
* Citi (Steven Englander)
*
* FOMC appeared “more dovish” than mkts anticipated
* Policy statement was “very reticent”
* Story link
* CRT (David Ader)
*
* Fed statement appears consistent with rate hike later in
2015
* Fed’s statement and economic projections seem, on net,
“a tad dovish with outlier dots lower and the
assessment of the economy now okay, but hardly hawkish”
* ING (Rob Carnell)
*
* No “hint” of how soon FOMC will raise benchmark rate
* Dot plot shows “some evidence of downward drift”
* Story link
* Jefferies (Ward McCarthy, Thomas Simons)
*
* Most important message from policy statement is Fed
continues to “meander down the path toward
normalization,” expects to implement liftoff sometime
in 2015
* Interpretation of dots shows majority of policy makers
are “leaving the door open” for two rate hikes
* Story link
* Pantheon (Ian Shepherdson)
*
* FOMC statement markedly more upbeat than in April, while
rest of text essentially unchanged
* Fed sees economy more or less back on track
* Story link

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