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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.
Fed Preview - July 2020: Setting The Stage For Action
MNI (London)
MNI Point of View:
- The July FOMC meeting may not result in immediate substantive policy action, but it will set the stage for some of the biggest and most anticipated Fed policy shifts in years.
- While the Fed is ultimately likely to adopt outcome-based forward guidance tied to inflation, more discussion rather than action looks likely at the July meeting given inter-meeting comments by FOMC members, and the framework review may have to be concluded first.
- Indeed, substantive action is now likely to be taken later in the year than had previously been expected (most on the sell-side see September as the most likely) as the Fed awaits further signals of the impact on the real economy from rising COVID cases and changing consumer / business behaviour, and whether this confirms that the improvement in some macro data points in June/July will prove fleeting.
- As our Policy team notes, the Fed may take its time even more than the market expects - see "Extra Fed Guidance May Be Delayed Till Year-End" and "Fed Dials Down Yield Curve Control Expectations".
Click here for the full Fed preview or see attached below:
Sell-Side FOMC Policy Expectations
(Bolded entries below indicate changes in analyst view since June FOMC)
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.
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