25 Feb 2015
Fed readying a change in its forward guidance - Barclays
FXStreet (Bali) - The eFXNews Team provides Barclays Capital's reaction on today's Fed Yellen testimony.
Key Quotes
"We read Fed Chair Janet Yellen’s prepared testimony to the Senate as indicating the Fed is readying a change in its forward guidance, which we see coming at the March meeting."
"However, the Fed is also saying that such a change in March would not automatically signal a rate hike in June, but, instead, would open the door for rate hikes in June or after, depending on the incoming data flow."
"We retain our call for a rate hike in June and look for the committee to alter the March statement by removing “patient” in favor of other language that suggests full data dependency. Risks to our forecast skew in the direction of a later take-off, especially if the downward pressure on core inflation from a stronger dollar is greater than expected."
Key Quotes
"We read Fed Chair Janet Yellen’s prepared testimony to the Senate as indicating the Fed is readying a change in its forward guidance, which we see coming at the March meeting."
"However, the Fed is also saying that such a change in March would not automatically signal a rate hike in June, but, instead, would open the door for rate hikes in June or after, depending on the incoming data flow."
"We retain our call for a rate hike in June and look for the committee to alter the March statement by removing “patient” in favor of other language that suggests full data dependency. Risks to our forecast skew in the direction of a later take-off, especially if the downward pressure on core inflation from a stronger dollar is greater than expected."