Fed: Options opens for September - Lloyds
|Analysts from Lloyds Bank see that yesterday the Federal Reserve left options open for the next meeting, after showing a more hawkish statement than expected.
Key Quotes:
“As widely expected, the Fed decided to keep policy unchanged today. The accompanying statement, however, was slightly more hawkish. If, as we forecast, economic data continue to improve over the next couple of months, a September interest rate hike remains a significant possibility.”
“Given the uncertain international environment, the Fed’s decision to keep policy unchanged today came as no surprise. Of more interest was whether the FOMC would make any material changes to its policy guidance. On balance it chose not to do so. While the tone of the statement remained consistent with the need to tighten policy, there was no strong signal of when this was likely to occur.”
“We suspect the Committee is leaving its options open while it awaits upcoming data, including Friday’s Q2 GDP release and next week’s July employment report.”
“The next key event may be Fed Chair Yellen’s speech at the Jackson Hole symposium on 26th August. That will give her a further opportunity to reaffirm the outlook for Fed policy and, if circumstances warrant, some indication of the Committee’s intentions for its next meeting.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.