Fed poised to raise rates in June – UOB

Pablo Piovano FXStreet

Following the release of the FOMC minutes, Strategists at UOB Gorup believe the Fed is on its way to tighten further its monetary conditions at the June meeting.

Key Quotes

“The May FOMC minutes noted that it would “soon be appropriate” to hike rates if expectations of the recent economic data weakness being transitory were met”.

“Nearly all FOMC policymakers expressed a favorable view of the proposed plan by the Fed staff via “a set of gradually increasing caps, or limits” as a way to reduce the Fed’s balance sheet in a gradual predictable manner”.

“The minutes reinforced expectations that the Fed is poised to hike rates again in June FOMC but the details on balance sheet reduction suggests a glacially gradual process”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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