JP Morgan - FOMC seems to further reduce the chances of a September taper announcement
A snippet from JPM's assessment of the FOMC statement and Powell's news conference comments this week:
- the statements reference to 'meetings' (plural) would seem to further reduce the chances of a September taper announcement. In 2013. the FOMC statements didn't begin to acknowledge progress toward their labour market goals until September, two meetings before the December taper announcement That template would seem to suggest that tapering could be announced at the November meeting.
- We continue to expect a December announcement, though we see a risk it could occur in November instead
Also, JPM says the developments from the meeting and presser:
- may have been a little more hawkish on tapenng, the overall message about the path of rates remains quite dovish
Earlier via Goldman Sachs on the FOMC this week, also tipping a December taper announcement.