April FOMC outlook from Credit Suisse: Focus....>

FED: April FOMC outlook from Credit Suisse: Focus likely to be on implementation

of various lending facilities, with FOMC comfortable with current stance.

Forward guidance to be unchanged, overall tone should continue to be dovish.

- Although Fed is effectively targeting the yield curve already, do not expect

it to adopt YCC at this meeting.

- Statement: Should acknowledge that inflation has slowed and running below

target, with expectations remaining low.

- Press conference: Powell to emphasize recent action to support market

functioning/contain economic damage from COVID-19; to reiterate Fed will

continue to act forcefully and aggressively until confident the economy is

"solidly on the road to recovery." Powell also likely to face questions on

emergency powers, independence, monetary financing.

- IOER: +5bps adjustment possible, but not our base case.

- Future action: Fed to stay committed to asset purchases in the amount

required, but will begin discussing tapering as market conditions improve. Rates

to remain at zero until at least H1 2021.