15 Jun 2014
Fed to keep tapering, attention shifted to 1st rate hike - Rabobank
FXStreet (Bali) - According to Philip Marey, Senior US Strategist at Rabobank, the FOMC is expected to remain on its $10bn/meeting tapering course on June 18.
Key Quotes
"Given the Fed’s tapering inertia and the re-acceleration of the economy since the extreme winter weather, we expect the FOMC to remain on its $10bn/meeting tapering course on June 18. This will bring down monthly asset purchases to $35bn, from $45bn."
"The updated economic projections of FOMC participants are likely to lead to a hawkish shift in the policy rate projections. However, at the press conference we may see a repetition of Chair Janet Yellen downplaying the importance of the ‘dot plot’."
Key Quotes
"Given the Fed’s tapering inertia and the re-acceleration of the economy since the extreme winter weather, we expect the FOMC to remain on its $10bn/meeting tapering course on June 18. This will bring down monthly asset purchases to $35bn, from $45bn."
"The updated economic projections of FOMC participants are likely to lead to a hawkish shift in the policy rate projections. However, at the press conference we may see a repetition of Chair Janet Yellen downplaying the importance of the ‘dot plot’."