Fed’s in a Pickle - SocGen
Kit Juckes, Research Analyst at Societe Generale, suggests that the odds
of this week’s US FOMC meeting delivering a rate hike are zero,
according to Bloomberg.
“The chances of a cut are higher, but only 2%. What matters is the tone of the statement but the Fed has painted itself into a corner. The odds of a June hike are now down at 20% and the FOMC can’t signal a move without triggering market turmoil.
A neutral/dovish message may provide a modicum of short-term comfort to markets and hold down the dollar but wouldn’t solve the problem of how to prepare markets for further policy normalisation.”