29 Apr 2015
June Fed rate hike still on the cards – BBH
FXStreet (Barcelona) - According to Brown Brothers Harriman, the Fed might recognize the US Q1 performance as transitory, and won’t rule out a June rate hike in today’s FOMC meeting.
Key Quotes
“We suspect the market is getting ahead of itself by selling the dollar ahead of key risk events. A FOMC statement today that keeps the June meeting live could help the greenback. And even if that alone is not convincing, a robust jobs report at the end of next week would put a more solid floor under the dollar.”
“The FOMC statement will recognize the weakness of the economy, and indeed there may be some downside risks to the consensus estimate of 1% Q1 GDP that will be reported today ahead of the Fed meeting.”
“Fed officials have already said as much in their speeches. However, they recognize that the main headwinds are likely to prove transitory. There is no reason at this juncture to reconsider this.”
“The trajectory of monetary policy is not a hostage to Q1 data. We do not expect the Fed to rule out a June hike. It has worked hard to shift the focus from dates to data. Ruling out a June hike is contrary to this thrust.”
Key Quotes
“We suspect the market is getting ahead of itself by selling the dollar ahead of key risk events. A FOMC statement today that keeps the June meeting live could help the greenback. And even if that alone is not convincing, a robust jobs report at the end of next week would put a more solid floor under the dollar.”
“The FOMC statement will recognize the weakness of the economy, and indeed there may be some downside risks to the consensus estimate of 1% Q1 GDP that will be reported today ahead of the Fed meeting.”
“Fed officials have already said as much in their speeches. However, they recognize that the main headwinds are likely to prove transitory. There is no reason at this juncture to reconsider this.”
“The trajectory of monetary policy is not a hostage to Q1 data. We do not expect the Fed to rule out a June hike. It has worked hard to shift the focus from dates to data. Ruling out a June hike is contrary to this thrust.”