Via Shane Oliver, Head of Investement Strategy & Chief Economist at AMP Capital
Notes that the US FOMC dots are now showing 2 hikes in 2023
- with the Fed more upbeat on outlook
Powell seemed more dovish in press conference though
- downplayed the dots (take "with a grain of salt")
- but said Fed now "talking about talking about tapering" but "substantial further progress still a ways away"
Formal taper talk is likely to start at the next Fed meeting with tapering likely from later this year/early next
- 2023 for the first Fed rate hike seems a reasonable expectation
Separately Oliver notes on the RBA
- we still first RBA hike in 2023