*** Bank desk reactions to the FOMC.........>

US VIEW: *** Bank desk reactions to the FOMC MonPol decision (1/3):

- Barclays: Changes to the statement were broadly in line with our exp. -

language on econ activity was modified to reflect the soft patch in Q1,

especially household spending, while the committee expressed more confidence

about hitting the 2% inflation target. The overall tone of the statement

suggests that the Committee is comfortable to gradually normalise. We continue

to exp. the next rate hike in June.

- BMO: This is another step closer to a June rate hike, and three total moves by

year end (which we expect will get displayed in next month's "dot plot" median).

- RBC: If there was 1 thing that the bears will latch on to it is the removal of

the language that "the economic outlook has strengthened in recent months". This

is not significant. It was appropriate to insert this language at the Mar confab

since that is when the Committee made some wholesale changes to their summary of

econ projections. The Fed was much gentler with inflation tweaks than they could

have been. This is part & parcel of not wanting the mkt to read too much into

changes at a non-press conference meeting.