USD and US Interest Rates Headed North after FOMC Minutes – Westpac

USD and US Interest Rates Headed North after FOMC Minutes – Westpac

19 May 2016, 07:55
Roberto Jacobs
0
50

USD and US Interest Rates Headed North after FOMC Minutes – Westpac

Martina Song, Research Analyst at Westpac, notes that the US dollar and US interest rates rose sharply after the minutes of the Fed’s 26/27 April meeting were released.

Key Quotes

“The minutes said a June hike was “likely” if the Q2 data improved, surprising markets. The FOMC minutes signalled that Q2 developments in labour data, growth, and inflation were key: “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June.”

There is ample opportunity for the Fed to expand on this over the next two weeks, with a plethora of Fed governors and regional presidents to speak, including Chair Yellen, NY Fed President Dudley and Vice Chair Fischer.”


fxs_logo_news.png

Share it with friends: