US: Discomforting dots

The growth projections of the FOMC members have been revised downwards and the unemployment projection has seen an upward revision
The projections for the federal funds rate (the "dots") have dropped 50 basis points
The Fed chairman considers the outlook to remain favourable, adding that it is a great time to be patient
Markets are less upbeat. They interpret patience as an underlying concern about downside risks and price a rate cut in the course of next year. We expect the policy rate to stay at its current level, this year and next.

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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