29 Jul 2013
Flash: September FOMC critical to forecasts – UBS
FXstreet.com (New York) - The Federal Open Market Committee meets eight times a year – since the end of 2007, all nineteen participants submit fresh economic forecasts at four of the FOMC's meetings, notes Mohi-uddin, Mansoor, Head of Foreign Market Strategy at UBS.
Key quotes
“Increasingly, these are the venues where officials have become more inclined to announce shifts in policy – as revised projections reflect changes in the economic outlook.”
“That suggests this year's September 17-18 FOMC meeting, when officials will next update their forecasts, may be more significant for investors anticipating the start of Fed tapering than the July 30-31 or October 29-30 FOMC meetings.”
“The Fed's decision to slow down its bond buying depends on upcoming data releases. However, the FOMC's shift over the last few years towards changing stance when its members publish new forecasts is becoming more evident.”
Key quotes
“Increasingly, these are the venues where officials have become more inclined to announce shifts in policy – as revised projections reflect changes in the economic outlook.”
“That suggests this year's September 17-18 FOMC meeting, when officials will next update their forecasts, may be more significant for investors anticipating the start of Fed tapering than the July 30-31 or October 29-30 FOMC meetings.”
“The Fed's decision to slow down its bond buying depends on upcoming data releases. However, the FOMC's shift over the last few years towards changing stance when its members publish new forecasts is becoming more evident.”