Free Trial

BNP Paribas' assessment of the June FOMC: -.....>

FED
FED: BNP Paribas' assessment of the June FOMC:
- June minutes will be instructive on the discussion of explicit fwd guidance
and YCC, including range of preferences for different frameworks. Powell did not
signal great urgency of adopting any such framework.
- Dot plot + press conference should continue to suppress both US rates
volatility and front-end yields.
- Persistent accommodation and a reopening of the economy should allow the curve
to bear steepen with front-end rates held low and longer rates reflecting
increasing inflation and growth expectations with time.
- The current balance sheet guidance will need to be further clarified, with
likely evolution towards YCC paired with outcome-based forward guidance. We
think the FOMC will formalize this by the end of the year.

To read the full story

Close

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.