18 Jun 2014
A dovish FOMC - Societe Generale
FXStreet (Guatemala) - Kit Juckes, head analyst at Societe Generale noted the details around the FOMC.
Key Quotes:
“A slightly more upbeat econ assessment despite downward revisions to growth”.
“No surprise on taper pace”.
“Overall tone of statement dovish enough”.
“2016 dots up a bit, longer run dots down a bit. The bulk of long run votes at 3.75 vs 4, 2016 dots range 0.5 to 4.25 with bulk 2-3, previous dots had majority in a 1.75-3 range....”
“There are more doves on the FOMC, which may explain everything, but the message is 1) as you were on taper trundle, no need to move your FF forecast, but mkt pricing looks a bit low, 2) Long term neutral policy guess is getting lower. 3) Carry on buying higher yielding assets, please”.
Key Quotes:
“A slightly more upbeat econ assessment despite downward revisions to growth”.
“No surprise on taper pace”.
“Overall tone of statement dovish enough”.
“2016 dots up a bit, longer run dots down a bit. The bulk of long run votes at 3.75 vs 4, 2016 dots range 0.5 to 4.25 with bulk 2-3, previous dots had majority in a 1.75-3 range....”
“There are more doves on the FOMC, which may explain everything, but the message is 1) as you were on taper trundle, no need to move your FF forecast, but mkt pricing looks a bit low, 2) Long term neutral policy guess is getting lower. 3) Carry on buying higher yielding assets, please”.