FOMC Could Be a ‘Non-Event’ – UOB
The research team at UOB Group does not expect noted the upcoming FOMC
meeting to yield any significant outcome, focusing instead on the June
meeting.
Key Quotes
“The Fed Reserve
has a meeting and a policy decision scheduled this coming week (26-27
Apr), but it is without any post FOMC press conference by Yellen or
review of the FOMC economic projections”.
“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% which been at 0% since
the dovish speech by FOMC Chair Yellen on 29 March 2016 while 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”.
