17 Jun 2015
FOMC: Down shift in dot plot - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that they expect that today’s downward shift in the dot plot will not be the last.
Key Quotes:
"The unevenness and fragility of the economic recovery make it likely that the rate path may see a pause in the current pace that the FOMC anticipates or even a reversal. Consequently, we expect that today’s disappearance of one rate hike (this time from 2016) will not be the last."
"Both during her prepared statement and during the Q&A, Chair Yellen stressed that despite the progress made in the labor market, there is room for improvement."
"The participation rate remains low, involuntary part-time unemployment remains high, and wage growth is still subdued. While these issues may not avert a rate hike this year, they are likely to slow down the remainder of the hiking cycle."
Key Quotes:
"The unevenness and fragility of the economic recovery make it likely that the rate path may see a pause in the current pace that the FOMC anticipates or even a reversal. Consequently, we expect that today’s disappearance of one rate hike (this time from 2016) will not be the last."
"Both during her prepared statement and during the Q&A, Chair Yellen stressed that despite the progress made in the labor market, there is room for improvement."
"The participation rate remains low, involuntary part-time unemployment remains high, and wage growth is still subdued. While these issues may not avert a rate hike this year, they are likely to slow down the remainder of the hiking cycle."