A quick preview of the Federal Open Market Committee (FOMC) meeting on Wednesday 18 March 2015
From CIBC's Avery Shenfeld, Managing Director and Chief Economist of CIBC World Markets. Comments from Friday:
- Says the Federal Reserve "will drop its pledge to be'patient' about the timing of a rate hike, to leave the door open for a June move;
- But it will replace that sentence with an emphasis on being 'datadependent', and will mention, alongside solid jobs numbers, the softness inrecent growth indicators"
- Reasons "to limit the pace of hikes" in the US will be mentioned, such as the rising USD and yields falling overseas
Says further:
- 'dots' forecasts "to have a somewhat slower climb than we saw in the prior vote"
- Says there could be a "muddled message" ... "could leave investors scratching their heads and make for a quiet post-statement reaction"
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The FOMC meeting announcement, economic projections and statement will be issued at 1800GMT on Wednesday 18 March 2015 . The press conference from Janet Yellen will follow at 1830GMT.
Mike had the word from Barclays's preview, here: FOMC Preview - The word according to Barclays, and that word will not be "patience"
