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

US VIEW: *** Bank desk reactions to the FOMC MonPol decision

- BNP Paribas: Overall, we saw the May statement as consistent with the

Committee's March SEP & recent Fedspeak, further emphasizing its confidence in

the inflation outlook by resetting inflation language to recognize both

inflation virtually at target and its potential to move above target. In

invoking its "symmetric" target and removing that it is monitoring inflation

developments closely, we think the Fed is signaling that a bit of an overshoot

will not necessarily cause it to shift up its rate path.

- BNY Mellon: The key amendment was that inflation is now exp. to run near its

symmetric 2% obj. over the near term. The risk statement remained characterized

as balanced, although the Fed no longer feels the need to monitor inflation

closely, ultimately, things are moving as planned.

- Rabobank: The emphasis on the symmetric inflation goal signals that the FOMC

won't be too worried about a slight/temporary overshoot. This suggests that the

Fed might see the need for some wiggle room later in '18. We think that the Fed

is inclined to hike at every 1/4ly meeting if mkt cond. & econ. data tolerate.