Bank of America Global Research discusses its expectations for tomorrow's FOMC policy meeting."We expect a hawkish Ma
Bank of America Global Research discusses its expectations for tomorrow’s FOMC policy meeting.
“We expect a hawkish May FOMC meeting with the Fed delivering a bigger 50bp rate hike and announcing QT, starting in June…Chair
Powell will likely reiterate the need to hike “expeditiously” &
restore price stability to prolong the business cycle…It will be hard for Fed to out-hawk the market. A non-committal Powell on 75bp June hike risks slightly dovish market outcome,” BofA notes.
“In our view, the FX market has already priced in a hawkish 50bp hike and announcement of QT at this week‘s Fed meeting, so we see a high hurdle for the US dollar to advance on the day
narrowly on account of Fed-related monetary policy factors, unless of
course Chair Powell signals an even faster clip of rate hikes ahead,”
BofA adds.
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