28 Jan 2015
Fed more dovish, normalization on track - ANZ
FXStreet (Bali) - According to ANZ Economists, the FOMC outcome was marginally more dovish despite admitting that policy normalization remains on track.
Key Quotes
"The FOMC once again indicated that they can be “patient” about when to start policy normalisation. But there were some small tweaks to the FOMC’s economic assessment."
"The language around the domestic economy was a touch more upbeat (ie the economy is expanding at a “solid” rather than “moderate pace”), while they seem more concerned about international developments and inflation."
"The FOMC now expects inflation to “decline further” in the near term before returning toward the 2% target over the “medium term” which suggests a longer period of time than previously expected."
"On balance the statement was more dovish than April but remains consistent with the FOMC starting policy normalisation around mid year."
Key Quotes
"The FOMC once again indicated that they can be “patient” about when to start policy normalisation. But there were some small tweaks to the FOMC’s economic assessment."
"The language around the domestic economy was a touch more upbeat (ie the economy is expanding at a “solid” rather than “moderate pace”), while they seem more concerned about international developments and inflation."
"The FOMC now expects inflation to “decline further” in the near term before returning toward the 2% target over the “medium term” which suggests a longer period of time than previously expected."
"On balance the statement was more dovish than April but remains consistent with the FOMC starting policy normalisation around mid year."