FOMC: No hurry to hike - Rabobank

By FXstreet.com | Updated July 25, 2014 AAA

FXStreet (Guatemala) - Analysts at Rabobank explained that they expect the FOMC to remain on its $10bn/meeting tapering course on July 30.



Key Quotes:



“Given the Fed’s tapering inertia and the re-acceleration of the economy since the extreme winter weather, we expect the FOMC to remain on its $10bn/meeting tapering course on July 30. This will bring down monthly asset purchases to $25bn, from $35bn”.



“Meanwhile, the debate between hawks and doves about the amount of slack in the economy has shifted to wages”.



“As long as wage growth remains muted, the doves – who have an overwhelming majority in the FOMC – will see this as evidence of ample slack and consequently they won’t be in a hurry to start hiking the fed funds target rate”.



comments powered by Disqus
Related Forex Analysis
  1. EUR/USD climbs back above 1.2600
    Forex News

    EUR/USD climbs back above 1.2600

  2. Dollar Charges to Multi Week Highs on Strong US GDP Data
    Forex News

    Dollar Charges to Multi Week Highs on Strong US GDP Data

  3. EUR/USD keeps the range post-US data
    Forex News

    EUR/USD keeps the range post-US data

  4. Ranges Persist in USD-Pairs Post-FOMC Meeting
    Forex News

    Ranges Persist in USD-Pairs Post-FOMC Meeting

  5. EUR/USD trading close to 1.2580 - FXStreet
    Forex News

    EUR/USD trading close to 1.2580 - FXStreet

Trading Center