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20 Mar 2014
FOMC takeaways - Fed's watcher Hilsenrath
FXStreet (Bali) - Fed's Watcher Hilsenrath, from the Wall Street Journal, notes that the FOMC was a mild hawkish signal that could grab the attention of investors.
Key Quotes
"Even though the Fed’s official policy statement affirmed its plan to keep rates below their longer-run trend for the foreseeable future, the projections of individual officials did point to a slightly more aggressive path for interest rate increases in 2015 and 2016 once they start the process of raising rates."
"Ten of 16 officials saw short-term rates rising to 1% or more by the end of 2015, with four of them right at 1%. Six officials saw rates below 1% by the end of 2015. In December, ten officials saw rates below 1% by the end of 2015."
"Twelve of 16 officials saw the target fed funds rate rising to 2% or above by the end of 2016, while four officials saw rates staying below 2% by the end of 2016. That compares to December, when eight officials saw rates 2% by the end of 2016 and nine officials saw rates below 2% by 2016. This is a mild hawkish signal that could grab the attention of investors."
Key Quotes
"Even though the Fed’s official policy statement affirmed its plan to keep rates below their longer-run trend for the foreseeable future, the projections of individual officials did point to a slightly more aggressive path for interest rate increases in 2015 and 2016 once they start the process of raising rates."
"Ten of 16 officials saw short-term rates rising to 1% or more by the end of 2015, with four of them right at 1%. Six officials saw rates below 1% by the end of 2015. In December, ten officials saw rates below 1% by the end of 2015."
"Twelve of 16 officials saw the target fed funds rate rising to 2% or above by the end of 2016, while four officials saw rates staying below 2% by the end of 2016. That compares to December, when eight officials saw rates 2% by the end of 2016 and nine officials saw rates below 2% by 2016. This is a mild hawkish signal that could grab the attention of investors."