30 Apr 2015
FOMC makes final step to data dependence - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch noted that the FOMC has taken a final step in its slow-moving shift to data dependence.
Key Quotes:
"The April meeting statement noted the slow start to the year, but dismissed assurances that interest rates would not rise soon. Looking ahead, the timing of rates lift-off will depend on a wide range of information regarding labor market conditions, inflation, financial and international developments. How the FOMC will balance out these influences, however, remains very uncertain."
"The role of global developments is a case in point. New York Fed President William Dudley noted that the US economy has become more interconnected globally, and that "the impact of US monetary policy has become more diffused, and financial market conditions have come to depend increasingly not only on developments at home, but also on developments abroad.""
Fed's job much harder
"San Francisco Fed President John Williams agrees: "the attention shouldn't just be focused on what the Fed's going to do, because there's also the story that's unfolding globally: the policy decisions in Japan, Europe, and elsewhere will spill over to other economies around the world." Clearly, the Fed's job has become much harder."
Key Quotes:
"The April meeting statement noted the slow start to the year, but dismissed assurances that interest rates would not rise soon. Looking ahead, the timing of rates lift-off will depend on a wide range of information regarding labor market conditions, inflation, financial and international developments. How the FOMC will balance out these influences, however, remains very uncertain."
"The role of global developments is a case in point. New York Fed President William Dudley noted that the US economy has become more interconnected globally, and that "the impact of US monetary policy has become more diffused, and financial market conditions have come to depend increasingly not only on developments at home, but also on developments abroad.""
Fed's job much harder
"San Francisco Fed President John Williams agrees: "the attention shouldn't just be focused on what the Fed's going to do, because there's also the story that's unfolding globally: the policy decisions in Japan, Europe, and elsewhere will spill over to other economies around the world." Clearly, the Fed's job has become much harder."