31 Jul 2013
Flash: QE tapering strategy to be revealed? – Deutsche Bank
FXstreet.com (New York) - Following the earlier US GDP report, the focus will then turn to the FOMC, note Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
“We expect that barring a major surprise in the GDP revisions, the Fed’s economic assessment should remain largely intact. If there are any surprises, we could see a formal update to the exit strategy principles originally laid out in the June 2011 meeting.”
“Recent media reports have also suggested that the Fed could tinker with its current rate guidance. Outside of that, the tone of the statement is likely to be quite similar to that of the prior meeting.”
“There is no press conference or forecast update, so the minutes of today’s meeting will be of greater market relevance than the actual statement (minutes are scheduled for release on August 21st), because the minutes are likely to show the degree to which participants are prepared to taper QE.”
Key quotes
“We expect that barring a major surprise in the GDP revisions, the Fed’s economic assessment should remain largely intact. If there are any surprises, we could see a formal update to the exit strategy principles originally laid out in the June 2011 meeting.”
“Recent media reports have also suggested that the Fed could tinker with its current rate guidance. Outside of that, the tone of the statement is likely to be quite similar to that of the prior meeting.”
“There is no press conference or forecast update, so the minutes of today’s meeting will be of greater market relevance than the actual statement (minutes are scheduled for release on August 21st), because the minutes are likely to show the degree to which participants are prepared to taper QE.”