28 Jan 2016
Fed: Labour market conditions improved further - Rabobank
FXStreet (Delhi) - Michael Every, Head of Financial Markets Research at Rabobank, notes that yesterday’s Fed meeting saw no change in rates (as widely expected); admitted that US growth had slowed.
Key Quotes
“It raised concerns over the global picture; and saw the strange addition of an updated ‘Statement on Longer-Run Goals and Monetary Policy Strategy’ that added they would be concerned if inflation were running persistently above or below the 2% objective, as it is, and as it was at the time of the December meeting.
However, the Fed statement started with a note that “labor market conditions had improved further”, suggesting this is something they are still focusing on. By showing markedly more reserve than in December, but yet with a hint of a Janus-face, they certainly confounded the markets: US stocks closed in the red (S&P-1.1%); the broad USD index ended the session slightly lower; and US 10-year yields closed little changed at 1.99% having risen as high as 2.04%.”
Key Quotes
“It raised concerns over the global picture; and saw the strange addition of an updated ‘Statement on Longer-Run Goals and Monetary Policy Strategy’ that added they would be concerned if inflation were running persistently above or below the 2% objective, as it is, and as it was at the time of the December meeting.
However, the Fed statement started with a note that “labor market conditions had improved further”, suggesting this is something they are still focusing on. By showing markedly more reserve than in December, but yet with a hint of a Janus-face, they certainly confounded the markets: US stocks closed in the red (S&P-1.1%); the broad USD index ended the session slightly lower; and US 10-year yields closed little changed at 1.99% having risen as high as 2.04%.”