19 Feb 2015
Fed: Still looking for first hike mid-year - ANZ
FXStreet (Bali) - ANZ Economics Team is still looking for the first Fed hike around mid-year, although they acknowledge that risks of a delay have increased.
Key Quotes
"The minutes from the January FOMC meeting were more dovish than expected although we do not expect there has been a wholesale change in view."
"The FOMC appears more concerned about risks from offshore and the higher USD and many FOMC members would prefer to keep the fed funds rate at near zero bound for a longer time."
"In our view, we would not read too much into the term ‘longer’. In addition, given many of the offshore risks – such as the Greek and Ukraine situations – now look more likely to be resolved, this should allay a lot of the stated reasons for hesitancy."
"We continue to look for the first hike around mid-year although we acknowledge the risks of the Fed waiting have increased. Yellen’s speeches next week will be important."
Key Quotes
"The minutes from the January FOMC meeting were more dovish than expected although we do not expect there has been a wholesale change in view."
"The FOMC appears more concerned about risks from offshore and the higher USD and many FOMC members would prefer to keep the fed funds rate at near zero bound for a longer time."
"In our view, we would not read too much into the term ‘longer’. In addition, given many of the offshore risks – such as the Greek and Ukraine situations – now look more likely to be resolved, this should allay a lot of the stated reasons for hesitancy."
"We continue to look for the first hike around mid-year although we acknowledge the risks of the Fed waiting have increased. Yellen’s speeches next week will be important."