Fed: Running policy on the tighter side of neutral - Westpac
|Richard Franulovich, Head of FX Strategy at Westpac, explains that the FOMC minutes underscore a growing groundswell in favour of running policy on the tighter side of neutral.
Key Quotes
“While the minutes note a “few” lean toward “modestly restrictive” policy, the dot plot shows a lot more than that - 13 of 16 dots put Fed Funds above neutral by end-2020 (median 3.375% vs r* at 3.00%), an overwhelming majority. Against that, rates markets project Fed Funds will remain below neutral by end-2020, albeit not by much, at 2.90%.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.