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”.



You May Also Like

Related Forex Analysis
  1. EUR down 0.9% after Draghi’s speech - Scotiabank
    Forex News

    EUR down 0.9% after Draghi’s speech - Scotiabank

  2. USD the trade of 2015, or more complicated? - RBS
    Forex News

    USD the trade of 2015, or more complicated? - RBS

  3. Currency; an increasingly important variable for central banks? - Rabobank
    Forex News

    Currency; an increasingly important variable for central banks? - Rabobank

  4. EUR/USD threatens 1.2400
    Forex News

    EUR/USD threatens 1.2400

  5. German and Eurozone CPI under focus – FXStreet
    Forex News

    German and Eurozone CPI under focus – FXStreet

Trading Center