Back
1 May 2013
Forex Flash: FOMC decision unlikely to lead to much reaction - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts believe that the FOMC decision is unlikely to lead to much reaction.
They feel that it won't alter its $85 bln a month purchases of long-term assets, but instead, the focus is on what the Fed says, and in particular, its economic assessment. They write, “It may recognize the recovery seen in Q1 after the economy practically stagnated in Q4 12. However, the recent string of data has been particularly poor, suggesting a sharp slowdown may be at hand. The Fed's characterization of the labor market is also important. Although the FOMC most likely does not have access to Friday's employment report, it may note that the improvement earlier this year is slowing or even stalling.”
They feel that it won't alter its $85 bln a month purchases of long-term assets, but instead, the focus is on what the Fed says, and in particular, its economic assessment. They write, “It may recognize the recovery seen in Q1 after the economy practically stagnated in Q4 12. However, the recent string of data has been particularly poor, suggesting a sharp slowdown may be at hand. The Fed's characterization of the labor market is also important. Although the FOMC most likely does not have access to Friday's employment report, it may note that the improvement earlier this year is slowing or even stalling.”