March FOMC meeting puts Powell, dots on centre stage – Standard Chartered
|Analysts at Standard Chartered believe that the FOMC will upgrade its median growth forecast for 2018-19 to 2.6% and 2.2%, respectively, in light of recent fiscal measures; but the median projected FFTR is unlikely to move higher at this stage.
Key Quotes
“We expect both the statement and the chair to strike a more hawkish tone in order to prepare markets for the possibility of an additional hike in 2018 and even 2019, perhaps at the June or September FOMC meeting. We think there is little chance of the median long-run neutral FFTR moving higher. Finally, we believe the Fed will look through the recent LIBOR-OIS widening.”
“The March FOMC meeting and press conference will be of particular interest:
1. It is Powell’s first ‘live’ meeting and first press conference as chair.
2. Powell’s strength as a leader will likely be closely gauged, both internally within the Committee and externally by market participants and the press.
3. The FOMC is very likely to raise the fed funds target rate (FFTR) another 25bps to 1.75%, and give additional colour on its view of real growth, inflation and likely policy path, in light of fiscal policy changes.
4. The Committee may comment on financial conditions, LIBOR-OIS widening.”
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.