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18 Mar 2015
FOMC to remove 'patient' from statement - RBS
FXStreet (Bali) - RBS expects the FOMC to remove its language that suggests it can be patient in beginning to normalize policy.
Key Quotes
"We expect the FOMC to remove its language that suggests it can be patient in beginning to normalize policy. But beyond that, Chair Yellen is unlikely to give any hints as to the exact timing of a move, as full data dependence implies that the move will depend wholly on how the data unfold."
"But most of the commentary will likely, in our view, will lean on the positive side and be focused on preparing markets for a normalization in policy that is likely to begin later this year at some point but will be gradual in nature."
"While that likely limits the scope for Chair Yellen and the FOMC to take an outright dovish stance, that “unclear” stance may be enough to leave participants disappointed about the lack of a true hawkish signal. Heading into the decision we retain core USD longs against both EUR and GBP. For a breakdown of scenario."
Key Quotes
"We expect the FOMC to remove its language that suggests it can be patient in beginning to normalize policy. But beyond that, Chair Yellen is unlikely to give any hints as to the exact timing of a move, as full data dependence implies that the move will depend wholly on how the data unfold."
"But most of the commentary will likely, in our view, will lean on the positive side and be focused on preparing markets for a normalization in policy that is likely to begin later this year at some point but will be gradual in nature."
"While that likely limits the scope for Chair Yellen and the FOMC to take an outright dovish stance, that “unclear” stance may be enough to leave participants disappointed about the lack of a true hawkish signal. Heading into the decision we retain core USD longs against both EUR and GBP. For a breakdown of scenario."