Scanning over the bank responses to the Federal Reserve's FOMC monetary policy announcement ... it seems confusion is the main theme
Bank of Tokyo-Mitsubishi:
- "How can Yellen honestly say April remains a live meeting?"
- "We aren't sure what spooked them"
- "We must admit we don't get the Fed's caution and concern with the risks out there"
- "They have done an excellent job at confusing the market"
Mitsubishi UFJ:
- Next rate increase possible in July or Sept.
- FOMC "continues to disregard the hawkish comments" of Vice Chair Stanley Fischer
Kit Juckes of Societe Generale:
- April hike seems "very remote"
- June is "possible", not probable
- Expected "something slightly more hawkish"
RBS
- Had expected 3 hikes this year, now back to 2: June and December to take the target rate to 0.75 - 1 % by year end
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Gotta say I am not feeling quite so confused. Maybe its 'cause I'm not paying enough attention.
I've been a 'one rate hike in 2016' guy ever since the fit started hitting the shan in early January.
Yellen seems to be more in tune with global impacts of Fed decisions than we tend to think. Whether that's right or wrong for a Federal Reserve chair I don't know. Maybe she is more in tune with international impacts 'cause she sees it all connected back into the US economy (again, rightly or wrongly).
