A few snippets from the bank previews, just the main points:
Barclays (June 13 dated note) says that risk is skewed toward the Fed surprising to the dovish side
- "If the Fed intends to deliver rate cuts before the end of the year, it might as well cut now"
JPMorgan (June 14 note)
- Fed will "communicate an easing bias"
- "without signalling a July ease as a foregone conclusion"
Westpac:
- While mindful of the risks, as this threat to growth has only just started showing up in business investment, and given the consumer remains on a strong footing, we believe the Committee will limit the scale of its June revisions and try to buy time.
- We do anticipate rate cuts, but only two rather than the market's four, and likely not until September (then December)
Earlier previews:
- Its FOMC Wednesday! Here's a preview of the Federal Open Market Committee meeting
- SG and MS: Federal Reserve FOMC meet this week - preview
- The Fed meeting (and BOE and BOJ meetings) highlights the week
TD recommends EUR/JPY short as an FOMC hedge
Latest Reuters poll has 40% of analysts expecting a Fed rate cut this year