FOMC Week: a Non-Event? - UOB
Analysts at UOB Group explained that the Fed Reserve has a meeting and a
policy decision scheduled this coming week, but it is without any post
FOMC press conference by Yellen or review of the FOMC economic
projections.
Key Quotes:
"The markets
may already view this as a non-event because based on trading in futures
and options data compiled by Bloomberg, the probability of another Fed
rate hike in April 2016 FOMC stayed unchanged at 0% (as of 22 April)
which has been at 0% since the dovish speech by FOMC Chair Yellen on 29
March; whilst the chance of a June hike rose to 19.6% (from 13.6% on 18
April).
Perhaps there may be some indications within the FOMC
statement to shed some light for the June FOMC outlook, but given the
rather long gap of 6 weeks we are unlikely to get a lot of certainty on
the timing of the next hike and instead, the officials will most likely
continued to keep the next June meeting as a “live” possibility.
Note
that there will be no senior Fed official speaking in public forums
ahead of the FOMC decision. After the FOMC, we have Dallas Fed President
Robert S. Kaplan (non-voter in 2016 FOMC) speaking in a public forum in
London on Friday."
