11 Jun 2015
FOMC members likely to signal towards a more gradual pace of tightening – BTMU
FXStreet (Barcelona) - According to Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, the FOMC members will likely match the dovish market expectations for a more gradual rate hike by lowering their projections for Fed funds rate.
Key Quotes
“FOMC participants are expected to lower their projections for the Fed funds rate to signal a more gradual pace of tightening. The median projections for the Fed funds rate from their March meeting were set at 0.625% for the end of 2015, 1.875% for the end of 2016, 3.125% for the end of 2017, and 3.75% for the longer run.”
“The updated FOMC projections are likely to move further towards the interest rate markets’ more dovish outlook.”
“A first rate hike is still likely this year.”
Key Quotes
“FOMC participants are expected to lower their projections for the Fed funds rate to signal a more gradual pace of tightening. The median projections for the Fed funds rate from their March meeting were set at 0.625% for the end of 2015, 1.875% for the end of 2016, 3.125% for the end of 2017, and 3.75% for the longer run.”
“The updated FOMC projections are likely to move further towards the interest rate markets’ more dovish outlook.”
“A first rate hike is still likely this year.”