FXStreet (Guatemala) – Analysts at Rabobank explained that this month’s meeting of the FOMC is not likely to be a watershed event.
Key Quotes:
“Meetings without a press conference and an update of the Committee’s economic and rate projections have become second-tier. While the Fed regularly stresses that major decisions could be taken at any meeting, during the press conference after the June meeting, Chair Yellen inadvertedly de-stressed this claim by saying that no decision had been made about September, December or March. She did not mention July, October or January…
Consequently, after the decision not to pull the trigger in June, which had been the focal point of the Fed and the markets for quite some time, the attention has shifted to September as the first possibility for a rate hike. While a September rate hike is a distinct possibility, we still have our doubts and we continue to attach a higher probability to a December lift-off.”
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