US: All eyes on Fed this week - NBF

According to analysts at National Bank Financial, the highlight of the week in the US will be the central bank’s monetary policy meeting.

Key Quotes

“Keeping in accordance with its most recent communications, which emphasized the central bank’s wait-and-see approach, the Fed will stay on the sidelines this time.”

“The newest version of the dot plot, for its part, should show participants lowering their rate hikes expectations for 2019 from two to one.”

“On February 27, Chair Powell said he expected the Fed balance sheet plan to be announced “fairly soon”. Thus, we may get more details as to when the Fed expect to halt the runoff of its balance sheet and what will be the reinvestment policy going forward for maturing Treasuries as well as for mortgage backed securities.”

“February’s existing home sales data will also be published, with a rebound expected following three straight declines. We’ll also get the flash estimate of Markit’s composite PMI for March.”