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14 Mar 2014
Flash: FOMC to remain on tapering course - Rabobank
FXStreet (Guatemala) - Strategists at Rabobank noted that given the Fed’s tapering inertia and the encouraging recent economic data, they expect the FOMC to remain on its $10bn/meeting tapering course on March 19.
Key Quotes:
“Yellen’s first meeting as the Chairman is more likely to lead to a change in forward guidance on the fed funds target rate. Now that we are close to the 6.5% threshold, we are likely to see the FOMC drop the Evans Rule”.
“We expect the Committee to take a step back from explicit numerical thresholds and talk about a range of labor market indicators, as well as other economic variables. A major challenge is to keep the markets convinced that there will be a substantial delay between the end of QE3 and the start of the hiking trail”.
Key Quotes:
“Yellen’s first meeting as the Chairman is more likely to lead to a change in forward guidance on the fed funds target rate. Now that we are close to the 6.5% threshold, we are likely to see the FOMC drop the Evans Rule”.
“We expect the Committee to take a step back from explicit numerical thresholds and talk about a range of labor market indicators, as well as other economic variables. A major challenge is to keep the markets convinced that there will be a substantial delay between the end of QE3 and the start of the hiking trail”.