Just a quick preview of the FOMC from Jan Hatzius (head honcho economist at Goldman Sachs)
- Says the Federal Reserve will deliver cautious commentary
- But will not shut "the door to a second hike in March"
- Says financial conditions in the US have tightened
- Says these conditions will have to ease before the Fedwill hike again
- Says the US dollar especially needs to fall prior to another hike
This is the financial conditions index Hatzius is referring to:
The index is based on a weighted average of interest rates, spreads, equities and FX. Based on the impact on 1-year forward GDP growth for the US