VIEW: Nordea write "looking at the market.......>

FED: VIEW: Nordea write "looking at the market pricing, 38 bp of easing is

priced in by March and 90 bp by year-end. Hence, if the Fed does not act in

March, it will effectively tighten financial conditions further - something the

Fed learned in Q4 2018 comes at significant costs to the real economy. The Fed

should thus deliver some easing in March. We think an easing package consisting

of a 25 bp rate cut, strong easing forward guidance (perhaps even a global

coordinated one?) as well as a postponement of the otherwise announced liquidity

tapering is on the cards. We see the risk as clearly tilted towards a bigger

rate cut of 50 bp in March. If equites tank even more ahead of the FOMC March

meeting, we would thus expect a 50 bp cut to materialise. In regards to the

liquidity tapering, we now expect POMOs and T-Bill purchases to run at least

throughout Q2 (and at least at the same pace). In our view, providing liquidity

is the most important tool in terms of limiting the damage to the real economy,

as securing enough liquidity to companies is essential in times of financial

distress. The uncertainty around our forecast is high."