27 Jan 2015
FOMC: Deliberations but no new declarations - BofA
FXStreet (Bali) - Economists at Bank of America Merrill Lynch expect The January FOMC meeting is likely to be quiet, not anticipating few changes in the statement at this month’s meeting.
Key Quotes
"The January FOMC meeting is likely to be quiet on the surface — a notable break from the nearly non-stop action by other central banks recently. There will not be any forecast updates or a press conference at this meeting."
"However, beneath the surface there are significant debates about the economic conditions that would warrant tightening and how to convey those through the guidance language. These debates should be revealed in the minutes (in three weeks’ time)."
"Hence, we expect few changes in the statement at this month’s meeting; the most likely would be to finally remove the “considerable time” language and retain a “patient” approach to policy. The December FOMC statement and minutes made clear that these two phrases were equivalent in the minds of most Fed officials. Thus, we do not expect a market reaction from dropping that now-redundant sentence."
Key Quotes
"The January FOMC meeting is likely to be quiet on the surface — a notable break from the nearly non-stop action by other central banks recently. There will not be any forecast updates or a press conference at this meeting."
"However, beneath the surface there are significant debates about the economic conditions that would warrant tightening and how to convey those through the guidance language. These debates should be revealed in the minutes (in three weeks’ time)."
"Hence, we expect few changes in the statement at this month’s meeting; the most likely would be to finally remove the “considerable time” language and retain a “patient” approach to policy. The December FOMC statement and minutes made clear that these two phrases were equivalent in the minds of most Fed officials. Thus, we do not expect a market reaction from dropping that now-redundant sentence."