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24 Feb 2015
Yellen expected to present a more optimistic outlook for US – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, expects Fed Chair Yellen to present a more optimistic outlook regarding the US economy, and further expects the Fed to drop “patience” in its March or June meeting, keep the mid-year rate hike scenario intact.
Key Quotes
“We expect Fed Chair Yellen to present a more optimistic outlook for the US economy with the recent loss of momentum likely seen as only temporary given that growth is likely to be boosted by lower energy prices this year.”
“Overall, the US economy has developed broadly in line with the Fed’s projections from December which revealed that they expect to begin raising rates from the middle of this year. The median projection was for the fed funds rate to the end this year at 1.125%.”
“We have seen since little notable economic developments over the last couple of months which could prompt a material shift in the Fed’s outlook for monetary policy. As such we continue to expect the Fed to begin raising rates from the middle of this year.”
“The exact timing of the first rate hike is still unclear. The June and September FOMC meetings are viewed as the most likely for the first rate hike to be delivered as they would allow Fed Chair Yellen to explain the decision in more detail and provide more policy guidance in the accompanying press conferences.”
“As a pre-signal to the first rate hike, the Fed would be expected to drop the phrase that they can be “patient” in beginning to normalize policy at either the March or June FOMC meeting.”
Key Quotes
“We expect Fed Chair Yellen to present a more optimistic outlook for the US economy with the recent loss of momentum likely seen as only temporary given that growth is likely to be boosted by lower energy prices this year.”
“Overall, the US economy has developed broadly in line with the Fed’s projections from December which revealed that they expect to begin raising rates from the middle of this year. The median projection was for the fed funds rate to the end this year at 1.125%.”
“We have seen since little notable economic developments over the last couple of months which could prompt a material shift in the Fed’s outlook for monetary policy. As such we continue to expect the Fed to begin raising rates from the middle of this year.”
“The exact timing of the first rate hike is still unclear. The June and September FOMC meetings are viewed as the most likely for the first rate hike to be delivered as they would allow Fed Chair Yellen to explain the decision in more detail and provide more policy guidance in the accompanying press conferences.”
“As a pre-signal to the first rate hike, the Fed would be expected to drop the phrase that they can be “patient” in beginning to normalize policy at either the March or June FOMC meeting.”