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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 - Mar 2023: Hiking Bias, But The End Is Nigh
MNI Fed Review - Mar 2023: Hiking Bias, But The End Is Nigh
EXECUTIVE SUMMARY:
- The FOMC delivered a dovish 25bp hike at the March meeting as it weighed stubbornly strong inflation dynamics against headwinds from the banking sector.
- The change in the Statement’s forward rate guidance and the unchanged 2023 Dot Plot rate median provide a clear baseline case for one further 25bp hike in May to a terminal 5.00-5.25% rate.
- Policy has decisively shifted to a meeting-by-meeting basis, with financial sector uncertainty raising the bar to further rate increases.
- Markets are pricing in an end to the hiking cycle in May at the latest, with significant cuts seen later in the year in defiance of Chair Powell’s guidance that cuts were not the FOMC’s base case.
- The decision triggered several sell-side analysts to change their outlook for the rate path ahead, mostly in a dovish direction and centering on a final 25bp hike in May.
FOR FULL ANALYSIS INCLUDING 30 SELL SIDE SUMMARIES:
Source: March FOMC Fed Funds Rate "Dot Plot", 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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