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26 Jan 2015
FOMC unlikely to alter path of policy - Nomura
FXStreet (Bali) - Nomura's Economic Team does not expect the FOMC to do anything dramatic to alter the expected trajectory of policy, when they meet for the first time in 2015 later this week.
Key Quotes
"At the first policy meeting of 2015, we do not expect the FOMC to do anything dramatic to alter the expected trajectory of policy. The minutes from the December meeting stated that most FOMC participants believed that the first rate hike was more than a “couple” meetings away. This essentially rules out “liftoff” before June (the meeting in April has no scheduled press conference.)"
"We would argue that the recent downdrafts for core inflation make an interest rate increase in June less likely. As reported in the minutes to its last meeting, the Committee did not expect to be deterred by developments abroad. However, since then, economic indicators, notably core CPI, have come in below expectations."
"Ultimately we expect the FOMC to put off its first interest rate hike until September, but we do not think that the Committee will want to send that signal at the meeting next week."
Key Quotes
"At the first policy meeting of 2015, we do not expect the FOMC to do anything dramatic to alter the expected trajectory of policy. The minutes from the December meeting stated that most FOMC participants believed that the first rate hike was more than a “couple” meetings away. This essentially rules out “liftoff” before June (the meeting in April has no scheduled press conference.)"
"We would argue that the recent downdrafts for core inflation make an interest rate increase in June less likely. As reported in the minutes to its last meeting, the Committee did not expect to be deterred by developments abroad. However, since then, economic indicators, notably core CPI, have come in below expectations."
"Ultimately we expect the FOMC to put off its first interest rate hike until September, but we do not think that the Committee will want to send that signal at the meeting next week."