US: Plunged into unchartered waters – ANZ

Tom Kenny, a Senior economist at ANZ Bank, shared his Fed preview while downgraded the US growth outlook. 

Key quotes

“Rates will be kept low for the foreseeable future and we expect asset purchases (QE) to continue for however long is needed.” 

“We expect no change to the Fed’s policy stance this week, which is already comprehensive and highly stimulatory. Chair Powell is likely to say that the Fed’s priority focus is to ensure credit channels are functioning.” 

“We have downgraded our GDP forecast for 2020 to a decline of 5.5% from 3.7% previously. This is inclusive of a more than 10% q/q decline in Q2.”