According to analysts at Rabobank, the minutes of the December 18-19 meeting clearly depicted the cautious tone of Fed speakers since the December meeting and the projection of two hikes in 2019 was made with this caution in mind.
“The recent speeches do not reflect a change of course that took place after the FOMC meeting.”
“The FOMC is trying to acknowledge the concerns about the economic outlook in the markets and the business sector, but still the Committee thinks those concerns are about downside risks. In this sense, there is still some distance between the Fed and the markets. Therefore, we think that a final rate hike in March is still likely, before downside risks become the Fed’s baseline.”
“We think that the FOMC will take a pause after a final hike in March leads to an inversion of the yield curve. However, history teaches us that this is an early warning signal for a recession 12-18 months later.”
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.