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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.
MNI Fed Preview - Jul 2021
EXECUTIVE SUMMARY:
- The FOMC will use the July meeting to debate its strategy to taper asset purchases (including timing, pace, and composition). The December FOMC looks like the most likely meeting for a formal announcement.
- The risks to the July Statement lean hawkish, but the mood could swiftly change with Powell delivering a relatively dovish press conference.
- Moves in yields since the June FOMC suggest increasing market concerns over the growth outlook, but it's unlikely this will persuade the Fed to change course at this stage.
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Source: MNI. See Fed Preview for methodology
Sell-Side Expectations:
- Analysts' focus is firmly on the tapering timeline, with most not mentioning their rate liftoff outlook in the July FOMC previews. Most see hawkish risks emanating from the July meeting.
- On tapering, consensus is firmly for a December announcement with initiation in January, though opinions vary slightly on the pace / composition of the taper (some see MBS being tapered more quickly than Tsys but consensus is for $10B Tsy / $5B MBS taper pace).
Source: BBG, MNI
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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