20 Mar 2015
Fed on track to hike in September – Nomura
FXStreet (Barcelona) - Economists at Nomura, comment that the FOMC has really become ‘data dependent’ and stay on track for beginning the rate hike from September.
Key Quotes
“We still believe that the Committee is on track to raise its target for short-term interest rates in September.”
“But the FOMC is not on auto pilot. The Committee has stepped back from specific forward guidance. This applies to both temporal commitments and to linking future decisions to specific quantitative criteria.”
“Starting in June, changes in interest rates will be considered on a meeting-by-meeting basis and the Committee will consider a wide range of factors.”
“Moreover, the significant changes in its forecasts, both for the economy and interest rates, suggest that the Committee will adjust the course of policy in response to economic developments. In other words, the FOMC really will be “data dependent”.”
“Finally, the FOMC sees the outlook as being sensitive to the level of the dollar. This may have important implication for FX markets.”
Key Quotes
“We still believe that the Committee is on track to raise its target for short-term interest rates in September.”
“But the FOMC is not on auto pilot. The Committee has stepped back from specific forward guidance. This applies to both temporal commitments and to linking future decisions to specific quantitative criteria.”
“Starting in June, changes in interest rates will be considered on a meeting-by-meeting basis and the Committee will consider a wide range of factors.”
“Moreover, the significant changes in its forecasts, both for the economy and interest rates, suggest that the Committee will adjust the course of policy in response to economic developments. In other words, the FOMC really will be “data dependent”.”
“Finally, the FOMC sees the outlook as being sensitive to the level of the dollar. This may have important implication for FX markets.”