Morgan Stanely says the Fed understands it needs to taper:
- the data has been so strong, it would be naive not to think the Fed wasn't moving closer to tapering over the past several month
- It's all part of the mid-cycle transition that has been ongoing for months
- another classic signal the market gets it
BoA looking for 2 rate hikes in the second half of 2023, or even earlier depending on how inflation develops in the US.
Citi says the FOMC has pivoted hawkish, on track for tapering QE purchases late this year
- late 2022 rate hike
Danske:
- shift in Fed rhetoric in our view marks the turning point for the USD
- we see the turnaround in USD/CNY materializing over the next 6-12 months
