Tuesday, April 27, 2010

FOMC: preview Bias and policy outlook

• The Fed will keep policy measures unchanged. A further normalisation of the discount rate spread will not be included in the decision, but could follow shortly.
• The language on growth will be more hawkish, while communication on low inflation will remain unchanged.
• There is a non-negligible risk of a change in the ‘extended period’ language. In any case, an alternative indication that the low rate period is becoming less extended is likely.
• The market is underestimating the risk of a

Flash Comment

No comments:

Post a Comment