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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FED
Quick read of the December meeting decision:
- The doubling of the taper pace is exactly as expected. And the statement is more hawkish leaning, as expected (Omicron gets a little mention though), though perhaps not as much as it could have been.
- There's no doubt that this is a more hawkish 2022 dot plot than had been expected, but the path thereafter is seen as a little more gradual (3 hikes in 2023; a further 2 more in 2024). As opposed to a hike-per-quarter schedule.
- Nobody sees the FOMC on hold in 2022 (vs 9 last time) and only 2 see the end-2023 rate below 1.375% (vs last time when 15 of 18 saw rates below 1.375%).
- The 2024 median of 2.1% is well below the 2.5% long-run dot but there are 5 who see the 2024 end-year Funds rate above 2.5%. (vs just 1 last time who saw the 2024 rate above 2.125%).
- Individual longer-run dots totally unchanged.
- Onto the Powell press conference.
Source: Federal Reserve
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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