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Citi's assessment of the June FOMC: - New Fed...>

FED
FED: Citi's assessment of the June FOMC:
- New Fed economic projections & post-meeting statement more dovish than
consensus as it indicates continuous stimulus support and no rate increases
until 2023.
- Specific mention of YCC in prepared remarks suggests Fed is considering more
seriously than anticipated. The announcement is not imminent as Powell announced
further discussions 'in coming meetings.'
- Even though we agree with the market assessment that asset purchase guidance
is marginally dovish, we stress that the reference to the 'coming months' limits
the potency of the statement.

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