Bloomberg (February 19)
Just released minutes from the January 27-28 FOMC meeting reveal Federal Reserve officials are “surprisingly wary of cutting interest rates…, with several even suggesting the central bank may need to raise rates if inflation remains stubbornly high.” The minutes make “clear the Fed is shifting further away from agreeing on another cut.”
Tags: Central bank, Cut, Federal Reserve, FOMC, Inflation, Interest rates, January 27-28, Minutes, Officials, Raise, Released
FX Street (December 17)
“USD/JPY, which fell particularly hard today should test 112.40 pre-FOMC but a move below that level may not happen until after the rate decision…. The economy is not doing as poorly as what is reflected by stocks and rate hike expectations…. Barring significant dovishness, any pullback in USD/JPY could be short-lived. Other currency pairs like EUR/USD and GBP/USD are a different story.”
Tags: Dovishness, Economy, Expectations, FOMC, Pullback, Rate hike, Stocks, USD/JPY
Institutional Investor (April 27)
With no major changes resulting at the Federal Open Market Committee (FOMC), “it’s easy to overlook the seismic shifts going on just beneath the surface that will impact policy and markets for the remainder of 2016.” The “astounding number of mixed signals and conflicting messages” emanating from Fed speakers of late is one clue to the divisions on the committee and the uncertainty regarding the U.S. economy.
Institutional Investor (March 18)
“Market sentiment today hinges almost entirely on the Federal Open Market Committee’s announcement this afternoon. The anticipation of any change in wording to policy means investors are again ready to rethink what a new market reality may look liked as the process of policy normalization begins.”
Tags: Announcement, Anticipation, FOMC, Investors, Market, Normalization, Policy, Sentiment
Institutional Investor (January 29)
“There will be no interest rate increase from the FOMC before December 2015.” Even though the Federal Reserve has indicated a mid-year increase, Institutional Investor believes this will be delayed. Members of the Federal Open Markets Committee “are acutely aware of the asymmetry of risk around the timing of rate hikes. That is, the cost of raising rates too soon—and stifling a domestic-focused, consumer-driven economic recovery—is viewed as considerably higher than the cost of raising rates too late.”
Tags: Asymmetry, Economic recovery, Federal Reserve, FOMC, Increase, Interest rates, Risk, Timing
