30 Jan 2014
Flash: Fed outlook hints further tapering ahead - ANZ
FXstreet.com (Bali) - As reported by the ANZ Research Team, the FOMC was more upbeat on the economy compared to last time, despite some recent mixed data.
Key Quotes
"As expected the FOMC reduced its monthly asset purchase program (APP) by a further USD10bn to USD65bn. There was also no change to the central bank’s forward guidance. Last month the FOMC made it clear that that it does not anticipate a need to raise the Fed Fund rate until well after the 6.5% threshold is passed."
"The risk is for a further modest fall in yields. Reversification remains in play. It is worth bearing in mind how little global liquidity conditions have actually tightened."
"There is nothing in the central bank’s assessment of economic conditions and the outlook that would suggest that the FOMC would hold off from a further measured reductions in its APP at its upcoming March meeting. That said, it will be worth monitoring closely US labour market data and recent unsettling developments in emerging markets."
Key Quotes
"As expected the FOMC reduced its monthly asset purchase program (APP) by a further USD10bn to USD65bn. There was also no change to the central bank’s forward guidance. Last month the FOMC made it clear that that it does not anticipate a need to raise the Fed Fund rate until well after the 6.5% threshold is passed."
"The risk is for a further modest fall in yields. Reversification remains in play. It is worth bearing in mind how little global liquidity conditions have actually tightened."
"There is nothing in the central bank’s assessment of economic conditions and the outlook that would suggest that the FOMC would hold off from a further measured reductions in its APP at its upcoming March meeting. That said, it will be worth monitoring closely US labour market data and recent unsettling developments in emerging markets."