The June FOMC meeting is under two weeks away, and it’s becoming evident that policymakers are beginning to lay the foundation for initial QE tapering efforts.
Central Bank Watch: Fed Speeches, FOMC Minutes, Interest Rate Expectations Update dailyfx.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailyfx.com Daily Mail and Mail on Sunday newspapers.
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Financial markets seem to be constantly recalibrating. The economic data is expected to be volatile and that should support the Fed’s patient stance on waiting for enough data to make a clear assessment over pricing pressures and the strength of the labor market recovery.
Inflation expectations are weighing on sentiment, but Treasury yields seem like they may be stuck in a holding pattern a little while longer. The front end of the curve is not moving and since expectations are so high for the US economic recovery, the bond market is still mostly counting on disinflationary forces to win out.
Central Bank Watch: Fed Speeches, Interest Rate Expectations Update
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Central Bank Watch Overview:
Federal Reserve policymakers are on the verge of releasing their April rate decision, but that doesn’t mean policy is heading anywhere new soon.
For the past two-plus weeks, Fed officials have been extremely disciplined with respect to a persistent drumbeat of keeping rates low and policy accommodative at the onset of the US economy’s recovery from the coronavirus pandemic.
Fed fund futures still see greater than a 90% chance that rates markets will be on hold through early-2022.
All Together Now: On Hold
In this edition of Central Bank Watch, we’ll review the speeches made over the past week by various Federal Reserve policymakers, including the Fed Chair himself. In the run-up to today s meeting (and ahead of the blackout window), Fed policymakers were extremely present in the day-to-day machinations of financial markets. The signposts have been made clear: po
Central Bank Watch: Fed Speeches, Interest Rate Expectations Update dailyfx.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailyfx.com Daily Mail and Mail on Sunday newspapers.