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18 Mar 2015
FOMC: Were they dovish? - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that the Federal Reserve met the widespread market expectations.
Key Quotes:
"It dropped the word patience and recognized growth had moderated. It wants to see more improvement in the labor market and needs to be confident that inflation will move toward its target in the medium term."
"Many are reading the FOMC's statement as dovish."
"An April hike is off the table, but that is as far the forward guidance went."
"The Fed also reiterated that when rates do begin to rise, the increases will likely be slower and peak lower in past cycles."
"Some observers are arguing that in the sub-text, the Fed is expressing concern about the rise in the dollar."
"She continued to note that dollar's strength partly reflected the strength of the US economy. The FOMC did recognize weaker exports, and Yellen mentioned how the dollar's strength would also serve to weigh on prices."
"On balance, the markets immediately read the FOMC statement as more dovish than our read. As Yellen’s press conference unfolded, the market seems to have reined in its exuberance."
Key Quotes:
"It dropped the word patience and recognized growth had moderated. It wants to see more improvement in the labor market and needs to be confident that inflation will move toward its target in the medium term."
"Many are reading the FOMC's statement as dovish."
"An April hike is off the table, but that is as far the forward guidance went."
"The Fed also reiterated that when rates do begin to rise, the increases will likely be slower and peak lower in past cycles."
"Some observers are arguing that in the sub-text, the Fed is expressing concern about the rise in the dollar."
"She continued to note that dollar's strength partly reflected the strength of the US economy. The FOMC did recognize weaker exports, and Yellen mentioned how the dollar's strength would also serve to weigh on prices."
"On balance, the markets immediately read the FOMC statement as more dovish than our read. As Yellen’s press conference unfolded, the market seems to have reined in its exuberance."