29 Apr 2015
FOMC balanced and largely as expected. - Deutsche Bank
FXStreet (Bali) - According to Deutsche Bank's Economics Team, the FOMC statement was balanced and largely as expected.
Key Quotes
No meaningful slant in either direction that surprises. Only tilts toward not being as dovish as some may have suspected come in: 1) econ "slowed during the winter months, in part reflecting transitory factors" This could equally also be taken as more hawkish since it also infers that some of the slowing is for real/more permanent. More relevant 2). "households’ real incomes rose strongly, partly reflecting earlier declines in energy prices." This reflects the 6.2% gain in real disposable income in Q1."
"All other comments fit with the acceptance that the economy has slowed albeit again partly because of transitory factors. They have also not wanted to completely kill off any prospects of a June tightening as they did with the April meeting, but clearly have not wished to tamper with current mkt expectations that suggest that probabilities of a June tightening are now negligible."
Key Quotes
No meaningful slant in either direction that surprises. Only tilts toward not being as dovish as some may have suspected come in: 1) econ "slowed during the winter months, in part reflecting transitory factors" This could equally also be taken as more hawkish since it also infers that some of the slowing is for real/more permanent. More relevant 2). "households’ real incomes rose strongly, partly reflecting earlier declines in energy prices." This reflects the 6.2% gain in real disposable income in Q1."
"All other comments fit with the acceptance that the economy has slowed albeit again partly because of transitory factors. They have also not wanted to completely kill off any prospects of a June tightening as they did with the April meeting, but clearly have not wished to tamper with current mkt expectations that suggest that probabilities of a June tightening are now negligible."