29 Jan 2015
Fed still ‘patient’, a rate hike can wait – Rabobank
FXStreet (Edinburgh) - Philip Marey, Senior US Strategist at Rabobank, assessed yesterday’s FOMC statement.
Key Quotes
“As expected, the FOMC repeated that it can be ‘patient’ in beginning to normalize the stance of monetary policy”.
“This means that they don’t expect to hike for at least the next couple of meetings”.
“As highlighted in our preview, ‘considerable time’ was removed”.
“In the December statement, when ‘patience’ was introduced, the FOMC stressed that that this new guidance was consistent with the October statement that it likely will be appropriate to maintain the 0.00-0.25% target zone for a ‘considerable time’ following the end of QE3 in October”.
“A repetition of the consistency between the new and the old would have been superfluous. In fact, when they changed from ‘considerable period’ to ‘patient’ in January 2004, they did not find it necessary to point out the consistency of the new and the old code words”.
Key Quotes
“As expected, the FOMC repeated that it can be ‘patient’ in beginning to normalize the stance of monetary policy”.
“This means that they don’t expect to hike for at least the next couple of meetings”.
“As highlighted in our preview, ‘considerable time’ was removed”.
“In the December statement, when ‘patience’ was introduced, the FOMC stressed that that this new guidance was consistent with the October statement that it likely will be appropriate to maintain the 0.00-0.25% target zone for a ‘considerable time’ following the end of QE3 in October”.
“A repetition of the consistency between the new and the old would have been superfluous. In fact, when they changed from ‘considerable period’ to ‘patient’ in January 2004, they did not find it necessary to point out the consistency of the new and the old code words”.