29 Apr 2015
FOMC updated guidance: Forget about June - Westpac
FXStreet (Guatemala) - Analysts at Westpac Banking Corporation noted the forthcoming FOMC event and sight June as a write off.
Key Quotes:
"The March 18 FOMC statement forward guidance was "that an increase in the federal funds target rate remains unlikely at the April FOMC meeting". Subsequent weaker jobs; retail; orders; production; and business survey data has prompted several Fed officials to indicate a preference to "lean to a little later versus a little earlier". It is now likely that the split apparent in the March meeting minutes over the likely rates lift off date (June or later?) has been resolved: ruling out a June increase may be the updated forward guidance."
"Through 2014 and into 2015, we have maintained that the weaker growth and soft inflation impulse would see the FOMC delay commencing policy normalisation until September."
"Given we expect further jobs gains and activity growth to accelerate to 3% in late 2015, we retain this call. However, should jobs flag and/or the inflationary impulse fade, the start to normalisation could be further delayed."
Key Quotes:
"The March 18 FOMC statement forward guidance was "that an increase in the federal funds target rate remains unlikely at the April FOMC meeting". Subsequent weaker jobs; retail; orders; production; and business survey data has prompted several Fed officials to indicate a preference to "lean to a little later versus a little earlier". It is now likely that the split apparent in the March meeting minutes over the likely rates lift off date (June or later?) has been resolved: ruling out a June increase may be the updated forward guidance."
"Through 2014 and into 2015, we have maintained that the weaker growth and soft inflation impulse would see the FOMC delay commencing policy normalisation until September."
"Given we expect further jobs gains and activity growth to accelerate to 3% in late 2015, we retain this call. However, should jobs flag and/or the inflationary impulse fade, the start to normalisation could be further delayed."