24 Mar 2015
June remains fit for a possible Fed hike – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS, comments on the recent Fed member speech, and views that June 17th remains a possible time for Fed to begin its rate hike plan.
Key Quotes
“Bullard and Williams both spoke with a common theme last night; stating a case that Michelle Girard has made recently. Both regional Fed Presidents appear to be really itchy to get off the zero bound soon.”
“Bullard frets about possible asset price bubbles if rates are left near zero while Williams seems to be taking dollar strength somewhat in stride saying, as Fed VC Chair Fischer argued yesterday, that the strength of the dollar reflects the stronger economy here versus elsewhere.”
“But both Williams and Bullard noted that even as rates rise, monetary policy will still remain accommodative given, among other things, the stock level of the Fed's balance sheet. This is just the point that Michelle has argued when defending her team's September lift-off call.”
“We all view Williams as a key, 'semi-core' FOMC participant so I guess the upshot is that June 17th remains a possible lift-off date even though market implied timing is out to October after Janet's presser last week.”
Key Quotes
“Bullard and Williams both spoke with a common theme last night; stating a case that Michelle Girard has made recently. Both regional Fed Presidents appear to be really itchy to get off the zero bound soon.”
“Bullard frets about possible asset price bubbles if rates are left near zero while Williams seems to be taking dollar strength somewhat in stride saying, as Fed VC Chair Fischer argued yesterday, that the strength of the dollar reflects the stronger economy here versus elsewhere.”
“But both Williams and Bullard noted that even as rates rise, monetary policy will still remain accommodative given, among other things, the stock level of the Fed's balance sheet. This is just the point that Michelle has argued when defending her team's September lift-off call.”
“We all view Williams as a key, 'semi-core' FOMC participant so I guess the upshot is that June 17th remains a possible lift-off date even though market implied timing is out to October after Janet's presser last week.”