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9 Apr 2015
FOMC minutes: core takeaways – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, highlights the key takeaways from the Fed and the FOMC Minutes, further adding that USD might remain range-bound till the outlook for rate hike becomes clearer.
Key Quotes
“The Fed is data dependent; particularly focused on labour and inflation metrics.”
“The criteria for interest rates hikes is unchanged and includes: further improvement in the labour market; a stabilization of core inflation and confidence that the Fed will reach its 2% inflation target;”
“For inflation, confidence in the 2% target will be partially dependent on: the labour market, a stabilization in energy prices and a levelling in the USD.”
“Several participants suggested the backdrop supports a June lift off; while a couple expected rates to rise in 2016.”
“For the USD, until the data provides a clearer outlook for interest rate hikes, the path of rates from there and the eventual plans for the Fed’s balance sheet, it is likely to favour upside, but stay largely range bound.”
“On an intraday basis the ranges are likely to widen as the market reacts to core data releases.”
Key Quotes
“The Fed is data dependent; particularly focused on labour and inflation metrics.”
“The criteria for interest rates hikes is unchanged and includes: further improvement in the labour market; a stabilization of core inflation and confidence that the Fed will reach its 2% inflation target;”
“For inflation, confidence in the 2% target will be partially dependent on: the labour market, a stabilization in energy prices and a levelling in the USD.”
“Several participants suggested the backdrop supports a June lift off; while a couple expected rates to rise in 2016.”
“For the USD, until the data provides a clearer outlook for interest rate hikes, the path of rates from there and the eventual plans for the Fed’s balance sheet, it is likely to favour upside, but stay largely range bound.”
“On an intraday basis the ranges are likely to widen as the market reacts to core data releases.”