FOMC Preview: What the major banks expect?

FXStreet — the focus is on the decision of the Federal open market Committee, the U.S. Central Bank, the Fed is today. Below you will find the expectations of the 4 major banks along with some thoughts about the future course of the Federal Reserve.


Today, the views of financial market participants on the interest rate decision from the US Central Bank in the evening. The US economic data of recent weeks is likely to have changed, on balance, the estimation of the guardian of the currency, sides of the Atlantic regarding the future monetary policy little. A continuation of the gradual increase of cycle is likely, although we expect after the last interest rate step from March until June with the next increase in the Fed Funds Rate by a further 25 BP. In September 2017 and interest is expected to be side, a further tightening of monetary conditions before the topic of «balance shortening» is becoming increasingly on the Agenda. Recently, some Central Bank members were provided with a timely employment of this Instrument of monetary policy. The Statement to the current key interest rate decision will be knocked off therefore, in this regard. Probably the minutes of the meeting (published on may 24, however, in the first place. May), for more information about how the members of the Federal Open Market Committee (FOMC) position here.

Bremer Landesbank

Today, the meeting of the Federal open market Committee of the Federal Reserve is once again in focus. After the first quarter of 2017 delivered a brutal economic disappointment, and the growth forecast of the Federal Reserve was not achieved for the year 2016, significantly, the question is how to set up open market Committee in the verbal acrobatics. One of his miscalculations or you are talking about the obvious structural problems, the Background of economic weakness, small? For the current session is expected in the current context, with no tightening on the interest rate front.


After the interest rate increase in March, the Fed will keep to its meeting next week is at a standstill and the key rate corridor at 0.75%-1,00%. In doing so, you will dismiss the slowdown in growth in the first quarter of well as well as a statistical outlier such as the surprisingly low Inflation in March. The US Central Bank remains on normalization rate, and is expected to increase in 2017, the interest twice.


The favourable economic scenario in the USA is intact, however, it is noticeable in terms of the Fed policy, that the last GDP growth rate, with only 0.9 % QoQ (annualized), and also the most recent value of the core inflation (PCE) of 1.6 % PY no acute pressure to act close to. A still hold at today’s FOMC meeting is, therefore, likely. Although the increases against the Background of low unemployment rate tended to with interest, and then also with a reduction in bond holdings by the Fed, a Vorfestlegung for an interest rate step in June, we expect.

** FXStreet News Editorial, FXStreet**

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