Summary of Deutsche's call for FOMC - they......>

FED: Summary of Deutsche's call for FOMC - they see open-ended QE program being

announced today:

- Statement: Slightly enhance the commitment to keep rates lower for longer by

by stating that the FOMC will keep rates at current levels until the economy is

"close to achieving the Fed's dual mandate goals", which would make clear that

it does not intend to raise rates anytime soon.

- Could be more incremental than that ("well on the way to achieving" vs "is on

track to achieve"). - Also could note May jobs report but emphasize jobs market

remains historically weak.

- SEP: Should reflect cautious outlook median dots signaling unch rates through

end-2022. All dots to remain at zero through 2021; a few may see 2022 liftoff.

- Press conference: Powell's focus will be to explain the next steps that the

Fed will be taking to provide monetary policy support for what is expected to be

a long recovery period. Should downplay SEP.

- QE: To announce an open-ended program, $65bn-$85bn monthly of both MBS/Tsys.