Summary of Barclays' call for FOMC - they are...>

FED: Summary of Barclays' call for FOMC - they are one of 5 analysts whose base

case is the Fed giving clarity on asset purchases today (i.e. more formal QE):

- SEP: Median funds rate at zero through end-2022. Median GDP = large drop in

2020 that takes several years to recover, along with elevated unemployment and

below-target inflation over 3-yr projection horizon.

- Fwd Guidance: No change at this meeting since Fed communication indicated that

responding to the coronavirus outbreak has delayed the completion of the

framework review. Look for a strengthening of fwd guidance at the July or, more

likely, September FOMC.

- QE: Fed to shift asset purchases from daily announced rate to monthly purchase

rate of $80bln for Tsys and $60bln for agency MBS, open-ended and loosely tied

toward progress on dual mandate.

- Additionally, likely to signal that these purchases intended to to keep

long-term rates low in support of an accommodative monetary policy stance -

therefore could shift purchases further out the curve as in QE3.