From UBS Global Macro Strategy
The
April FOMC statement was broadly in line with expectations. The
headline grabbing line was that the FOMC no longer called out the risks
posed by "global economic and financial developments", but upon closer
inspection, the Fed simply said it will now "closely monitor" those
developments. This revision likely reflects the recent improvement in
financial conditions, much of which we would attribute to Fed policy.
"Policy relief" narrative remains intact…