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16 Mar 2015
Fed’s “patience” in the limelight this week – UOB Group
FXStreet (Edinburgh) - Analysts at UOB Group remarked the relevance of this week’s FOMC meeting (Wednesday).
Key Quotes
“Essentially, the markets are expecting FOMC Chair Janet Yellen to remove the Fed’s pledge to be “patient” on raising interest rates within the statement but the crux is whether the statement is crafted well enough to allay market concerns about impending rate hikes”.
“Yellen needs to convey the message to have the flexibility to tighten when conditions are ripe in line with her efforts to shift away from calendar-based guidance, and to be data-dependent but that it is not happening in the next meeting in April”.
“She may also address the Fed’s view on the recent US dollar strength”.
Key Quotes
“Essentially, the markets are expecting FOMC Chair Janet Yellen to remove the Fed’s pledge to be “patient” on raising interest rates within the statement but the crux is whether the statement is crafted well enough to allay market concerns about impending rate hikes”.
“Yellen needs to convey the message to have the flexibility to tighten when conditions are ripe in line with her efforts to shift away from calendar-based guidance, and to be data-dependent but that it is not happening in the next meeting in April”.
“She may also address the Fed’s view on the recent US dollar strength”.