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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 Review - June 2023: Unconvinced By The Dots
MNI Fed Review - June 2023: Unconvinced By The Dots
EXECUTIVE SUMMARY:
- The June FOMC meeting outcome was more hawkish than expected, with the Dot Plot guiding to a further 50 basis points of rate hikes this year, and Chair Powell clearly signaling that July is “live” for a hike.
- The reaction to the meeting was mixed, with many market participants asking why the Fed didn’t simply raise rates now, if they foresee at least two more hikes this year.
- Market hike pricing didn’t rise significantly, with analysts divided over whether June’s communications were merely a compromise to satisfy hawkish participants opposed to holding rates in June.
- The dovish market reaction in Powell’s press conference underscored how the “actual” current FOMC stance was seen as more nuanced, if not more dovish, than the Dots shock implied.
- In the end the FOMC will probably be satisfied with 2023 rate cuts being further priced out, with a July hike likely but still uncertain.
FOR FULL ANALYSIS INCLUDING 31 SELL SIDE SUMMARIES:
June 2023 SEP Dot Plot Source: MNI, Federal Reserve
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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