Micael Gapen and Pooja Sriram at Barclays......>

FOMC: Micael Gapen and Pooja Sriram at Barclays write of the March FOMC "Gradual

normalization strikes a 'middle ground'".

- Barclays note that the average funds rate rose by 20-30bp across the

projection horizon. Plus, the Summary of Economic Projections included "Faster

growth, lower unemployment, but only a modest pickup in inflation".

- Gapen and Sriram highlight that Powell said that the link between resource

utilization is not strong and members see the Phillips curve as flat.

- Most of the revisions to dots and forecasts were in line with what Barclays

had expected but they were surprised that the median long-run policy rate was

also revised higher to 2.9%, from 2.8%.

- Other parts of the Powell press conference highlighted by Barclays were that

the balance sheet is on auto-pilot and interest rate policy will be the primary

tool to respond to changes in the outlook. Powell also mentioned that no

decision about the long-run operation framework should be expected in the near

term: RRP and IOER will remain for some time.