23 May 2014
Fed: lower for longer? - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees the Fed's policy to keep the status quo for the time being.
Key Quotes
"Comments overnight from San Francisco Fed President Williams who will become a voting FOMC member next year have provided reassurance that Fed monetary policy “will remain highly accommodative for some time”. He also noted that “a real tightening of policy, which would mean raising the fed funds rate, is still a good way off”."
"However, he did state that “barring any major shocks, monetary policy in finally on the road to normal” with economic indicators showing “substantial underlying momentum”. The first Fed rate hike is not expected until the middle of next year, which could lead to pick up in financial market volatility in 2015."
Key Quotes
"Comments overnight from San Francisco Fed President Williams who will become a voting FOMC member next year have provided reassurance that Fed monetary policy “will remain highly accommodative for some time”. He also noted that “a real tightening of policy, which would mean raising the fed funds rate, is still a good way off”."
"However, he did state that “barring any major shocks, monetary policy in finally on the road to normal” with economic indicators showing “substantial underlying momentum”. The first Fed rate hike is not expected until the middle of next year, which could lead to pick up in financial market volatility in 2015."