Dealer economists do not expect any surprises...>

FED: Dealer economists do not expect any surprises from Wed's FOMC annc. 

- JP Morgan economists said the "more interesting statement revisions will come

in the Fed's re-write of the inflation language. JPM anticipates "year-ago

readings on Mar headline and core PCE inflation will print at 2.0% and 1.9%,

respectively. This will necessitate a change in wording to note that inflation

is now effectively right at the Fed's target. The outlook section will also need

to be revised to say the Committee looks for inflation to continue to stabilize

around 2 percent." 

- TD Securities macro strategists also "expect a largely unchanged policy

statement, which should have little implications for rates" while rate markets

are "almost fully pricing in" a June hike and one more later in year.

- Deutsche Bank economists "also expect relatively minor changes" in the FOMC

statement will address "recent firming inflation data. Specifically, the

language around inflation will likely change to reflect that recent

year-over-year prints 'are near 2 percent' rather than 'have continued to run

below 2 percent'."