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16 Mar 2015
Dollar strength to affect FOMC’s policy adjustment going forward – Nomura
FXStreet (Barcelona) - Economists at Nomura, expect the Fed to drop ‘patient’ at its meeting this week, and express some concerns over USD’s recent appreciation.
Key Quotes
“We expect the FOMC to drop its reference to being “patient” at the meeting... However, as she did in recent Congressional testimony, we expect Chair Yellen to use her press conference to stress that this change does not necessarily mean the FOMC will hike rates at its June meeting.”
“We also expect the FOMC to acknowledge, at least to some degree, that the recent appreciation of the dollar could be a drag on the recovery and that path of it could affect the path of interest rate adjustment.”
“The rapid appreciation of the dollar in recent months is unusual relative to previous periods, when the Federal Reserve tightened policy significantly.”
“It seems likely that the rapid appreciation of the dollar will affect the manner in which the FOMC adjusts policy going forward.”
Key Quotes
“We expect the FOMC to drop its reference to being “patient” at the meeting... However, as she did in recent Congressional testimony, we expect Chair Yellen to use her press conference to stress that this change does not necessarily mean the FOMC will hike rates at its June meeting.”
“We also expect the FOMC to acknowledge, at least to some degree, that the recent appreciation of the dollar could be a drag on the recovery and that path of it could affect the path of interest rate adjustment.”
“The rapid appreciation of the dollar in recent months is unusual relative to previous periods, when the Federal Reserve tightened policy significantly.”
“It seems likely that the rapid appreciation of the dollar will affect the manner in which the FOMC adjusts policy going forward.”