Fed will balance near-term uncertainty with upbeat economic outlook - TDS

Research Team at TDS, suggests that in the forthcoming FOMC meet, the Fed will balance near-term uncertainty (health of the labor market following the May report, UK referendum outcome) with a generally upbeat outlook for the economy.

Key Quotes 

“Governed by data dependence, the Fed will remain vague on the exact timing of the next rate hike and will again emphasize the theme of gradualism. The SEP should see modest tweaks while the median dots are not likely to change. The absence of renewed dovishness will lead to a hawkish market response.”