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Deutsche Bank on SLOOS

US OUTLOOK/OPINION
  • The Federal Reserve Board of Governors will release the latest Sr Loan Officer Opinion Survey on Bank Lending Practices this afternoon at 1400ET. According to the Fed, survey questions "cover changes in the standards and terms of the banks' lending and the state of business and household demand for loans. The survey often includes questions on one or two other topics of current interest." Link
  • Deutsche Bank posits SLOOS "will likely be the main highlight as this will provide some sense of how policymakers may have been thinking about the extent of monetary restriction at last week's meeting. Recall that in Powell's prepared remarks, he removed the line from March stating that:
  • "We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."
  • "This was a hawkish innovation as it signaled less confidence in reducing rates this year and indicated the Committee is stepping back from any calendar-based guidance – a common theme throughout the press conference."

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