FOMC: All focus on dot plot - TDS

TD Securities analysts are expecting that the dot plot from the March FOMC meeting is likely to be a key focus of the attention tomorrow.

Key Quotes

“We look for the median dots to decline in each of the next three years, but not all the way to zero for 2019.”

“We also expect the Fed to give more information about the desired equilibrium supply of reserves, and to state that balance sheet runoff will end later this year.”

“Markets: Only a significant deviation from the script would create a strong reaction in Treasuries as modest dovishness is already priced. The hurdle to generate an outsized reaction in FX is rather high. With the world mired in a growth slowdown and awaiting a pick-up, we see limits to sustained USD weakness. Fresh catalysts are required to flip that script.”