Anders Svendsen, analyst at Nordea Markets, suggests that they doubt that the US Fed will be ready to cut its policy rates at today’s FOMC meeting but expect a clear signal of cuts ahead and a dot plot that supports the message.
Key Quotes
“We expect the Fed to keep its key policy rates unchanged at 2.25-2.50% for the corridor and 2.35% for the interest on excess reserves (IOER).”
“We expect clear signals of rate cuts ahead at Chair Powell’s press conference and expect the dot plot to support that message.”
“We changed our Fed forecast and now expect four rate cuts starting in July, though the Fed is not anywhere near that dovish yet.”
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