27 Jul 2015
FOMC meeting on the spotlight this week – BBH
FXStreet (Edinburgh) - The Research team at BBH remarked the relevance of this week’s FOMC meeting (Wednesday).
Key Quotes
“This week's FOMC meeting is the last one before September. Surveys suggest that a little more than 80% of the economists expect the Federal Reserve to hike rates in September. The September Fed funds futures, the most direct market instrument, has only about a 50% chance discounted”.
“The economy is performing largely in line with the Fed's expectations. Investors may be looking in vain if they expect some hint from the FOMC that it will in fact hike rates in September. It is more reasonable to expect a non-committal statement on the timing of the liftoff, as Yellen did in her recent Congressional testimony”.
“The Fed diligently worked to shift the focus of the outlook of policy from a date-specific commitment to a data-dependent path. A signal of a September rate hike would bring investors back to thinking about the date and unwind the Fed's efforts”.
“This is unlikely. There is still much economic data to be released, including two employment reports. Also in the coming weeks, there will be a greater sense of the economic performance for the first couple of months of Q3”.
Key Quotes
“This week's FOMC meeting is the last one before September. Surveys suggest that a little more than 80% of the economists expect the Federal Reserve to hike rates in September. The September Fed funds futures, the most direct market instrument, has only about a 50% chance discounted”.
“The economy is performing largely in line with the Fed's expectations. Investors may be looking in vain if they expect some hint from the FOMC that it will in fact hike rates in September. It is more reasonable to expect a non-committal statement on the timing of the liftoff, as Yellen did in her recent Congressional testimony”.
“The Fed diligently worked to shift the focus of the outlook of policy from a date-specific commitment to a data-dependent path. A signal of a September rate hike would bring investors back to thinking about the date and unwind the Fed's efforts”.
“This is unlikely. There is still much economic data to be released, including two employment reports. Also in the coming weeks, there will be a greater sense of the economic performance for the first couple of months of Q3”.