18 Jun 2014
Fed is expected to taper bond buys to $35 billion/month
FXStreet (Barcelona) - Forex Crunch Analyst Yohay Elam predicts that following today's monetary policy meeting the FOMC will announce the 5th consecutive reduction of bond purchases, to 35 billion dollars per month.
Key quotes
"Markets will likely focus on the fresh economic projections, especially those concerning the potential timing of a rate hike."
"The previous decision was not accompanied by a press conference, and it passed quite quietly. This was not the case in March, when Yellen said that a rate hike could come within 6 months of the end of QE and stirred markets. She might be more careful this time, but given the recent improvement, we can expect a more hawkish approach, suggesting an earlier rate hike than expected."
"If the hints are subtle, a full response to the FOMC statement and the press conference can only be expected in the following sessions. Contrary to April's decision, this one could have a long lasting impact on markets."
Key quotes
"Markets will likely focus on the fresh economic projections, especially those concerning the potential timing of a rate hike."
"The previous decision was not accompanied by a press conference, and it passed quite quietly. This was not the case in March, when Yellen said that a rate hike could come within 6 months of the end of QE and stirred markets. She might be more careful this time, but given the recent improvement, we can expect a more hawkish approach, suggesting an earlier rate hike than expected."
"If the hints are subtle, a full response to the FOMC statement and the press conference can only be expected in the following sessions. Contrary to April's decision, this one could have a long lasting impact on markets."