SEB: Fed expected to dovish – eFXnews

FXStreet (Barcelona) - According to SEB, today’s FOMC statement is likely to be perceived as dovish by the markets, and unlikely to offer any major surprise, as noted by eFXnews.

Key Quotes

“Today’s rate decision is unlikely to offer any major surprises since the Committee has pledged to not raise interest rates at this point and no press conference has been called. The economic slowdown in Q1 is expected to be temporary as extremely cold weather in some parts of the country is partly to blame.”

“Nonetheless, the economic assessment should have a soft tone and the statement may well be perceived as dovish.”

“Markets are pricing in approx. 0.35% and 1.0% fed funds rate at end 2015 and 2016, respectively, well-below Fed’s dot plots.”

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