Analysts at Danske Bank point out that yesterday, we got more dovish signals from the Fed.
Key Quotes
“While it was not a surprise that the Fed’s Kaplan said the Fed could wait and see for ‘a quarter or two’, it was more noteworthy that the Fed’s George, normally considered a hawk, said that the Fed should continue ‘with caution’ and that it might be a good idea to ‘pause Fed rate normalisation’. She also said the impact of the balance sheet policy was ‘unclear’.”
“Overall, a very dovish message supporting that the Fed is on hold for now and likely until the June meeting. The comments, together with expectations of tax cuts from China, probably supported risk sentiment and S&P ended 1.1% higher yesterday.”
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