9 Apr 2015
FOMC minutes tilted mildly dovish - BofA
FXStreet (Bali) - BofA Merrill Lynch Economics Team notes that the March FOMC minutes tilted mildly dovish in support of the cuts to the Fed’s projections.
Key Quotes
"As expected, the March FOMC minutes tilted mildly dovish in support of the cuts to the Fed’s projections, with particular emphasis on the drag from the stronger US dollar."
"At the same time, “several” Fed officials supported a June liftoff and the discussion broadly cited “temporary” sources of weakness in the near-term data. The further deterioration in the data since mid-March make the Minutes a bit stale. Our base case remains a September start to rate hikes, with risks for a later liftoff."
"The initial market reaction pointed to an expectation of a more dovish discussion, but the tone was less certain of a June rate hike than prior Fed communications. Subsequent price action was consistent with a more neutral to dovish interpretation."
Key Quotes
"As expected, the March FOMC minutes tilted mildly dovish in support of the cuts to the Fed’s projections, with particular emphasis on the drag from the stronger US dollar."
"At the same time, “several” Fed officials supported a June liftoff and the discussion broadly cited “temporary” sources of weakness in the near-term data. The further deterioration in the data since mid-March make the Minutes a bit stale. Our base case remains a September start to rate hikes, with risks for a later liftoff."
"The initial market reaction pointed to an expectation of a more dovish discussion, but the tone was less certain of a June rate hike than prior Fed communications. Subsequent price action was consistent with a more neutral to dovish interpretation."