ICYMI from Bank of America on what they expect from the Federal Open Market Committee (FOMC) and Powell after his press conference:
The BoA asserts that the main objective of the FOMC will be a three-way one:
- “Politics needs more time,
- the next step will most likely be a rate cut,
- and the committee is in wait-and-see mode until the Fed has more clarity on inflation,”
Regarding policy measures:
- expect quantitative tightening to be slowed by reducing the monthly Treasury bond redemption cap from $60 billion to $30 billion
And, from Federal Reserve Chairman Powell:
- We suspect that Powell is comfortable with substantially moving away from interest rate cuts this year and that he “will likely also struggle to ‘stand out’ from the market.”
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The Federal Open Market Committee’s (FOMC) policy decision will be released on Wednesday, May 1 at 2:00 p.m. EDT (6:00 p.m. GMT) and Fed Chairman Jerome Powell will follow up with his press conference at 2:30 p.m. (6:30 p.m. GMT) .
Previous previews:
- FOMC meeting this week: “the most interesting news about this meeting will come on May 22”
- “The Fed has simply hit a brick wall”
- expect a hawkish Fed and Powell
- Fed cuts not imminent
This article was written by Eamonn Sheridan at www.forexlive.com.
cnbctv18-forexlive
