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”.



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