Free Trial
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.
FED
We haven't really seen many updated expectations for the Statement accompanying today's (likely) 75bp hike. Previously we’d seen a largely unchanged statement, but now the language on inflation-fighting could be a little more forceful as they justify the larger-than-previously-signaled hike:
- The characterization of inflation pressures: The May statement included: “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.” If changed, it's most likely to be in a hawkish direction by eliminating the reference to the imbalances being related to the pandemic. It may also note concerns over the persistence of inflation, and/or if they want to be even more hawkish, entrenched inflation expectations.
- Forward rate guidance: The May guidance reiterated that following the rate hike at that meeting, the FOMC “anticipates that ongoing increases in the target range will be appropriate”. For a hawkish twist, something like the following from Powell's comments last month could be appended: “until there is clear and convincing evidence that inflation pressures are moderating.”
Source: 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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok