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27 Apr 2016
FOMC preview: watch for June hints - Nomura
Analysts at Nomura offered a preview for the forthcoming FOMC meeting:
Key Quotes:
"We believe that the FOMC will again stand pat on policy at its April meeting (Consensus: 0.25-0.50%). We expect the FOMC to wait until June to raise short-term interest rates again."
The FOMC will likely prefer to wait to see if growth rebounds in Q2 after somewhat slower growth in the last two quarters; it will probably want to see more data on inflation and continue to monitor global economic and financial developments.
Although we do not expect the Committee to change policy at its April meeting, we will see if it leaves any hints about moving in June, and whether or not it leaves open the possibility of a June hike. In this context, how the Committee describes the economy and risks to the outlook will be very important."
Key Quotes:
"We believe that the FOMC will again stand pat on policy at its April meeting (Consensus: 0.25-0.50%). We expect the FOMC to wait until June to raise short-term interest rates again."
The FOMC will likely prefer to wait to see if growth rebounds in Q2 after somewhat slower growth in the last two quarters; it will probably want to see more data on inflation and continue to monitor global economic and financial developments.
Although we do not expect the Committee to change policy at its April meeting, we will see if it leaves any hints about moving in June, and whether or not it leaves open the possibility of a June hike. In this context, how the Committee describes the economy and risks to the outlook will be very important."