April FOMC outlook from Deutsche: Meeting.......>

FED: April FOMC outlook from Deutsche: Meeting will primarily provide a status

update on actions to date/FOMC's evolving views about the economic outlook.

- Statement: to reiterate "prepared to use full range of tools".

- Press conference: Powell to express appropriate degree of concern about the

current state of the economy, and cautious about the near-term outlook,

particularly given uncertainties about how the virus will evolve. Should express

expectations that the economy may only reopen gradually.

- However, Powell to emphasise that economy was on strong footing before

COVID-19, optimistic about prospects for economic rebound after it subsides.

- Update on various facilities, including potential expansions/adjustments (eg

Main Street facility). Powell likely to maintain flexibility in the response,

but do not expect FOMC to commit to future plan for facilities' size.

- Could be Q's on policy review, but FOMC probably not been able to devote much

time to this recently. Powell to reiterate FOMC not contemplating -ve rates.

- IOER: No change (a hike risks sending a hawkish signal), though close call. If

changed, will be in associated implementation note, not Statement.