Sonia Meskin, US economist at Standard Chartered, notes that the FOMC’s March Summary of Economic Projections (SEP) has reflected a change in the bank’s reaction function. Key Quotes “Even with real growth projected to remain above potential in 2019, we believe the FOMC will not hike again in this business cycle as it prepares its tools for the next downturn.” “To reflect the FOMC’s policy shift, we adjust our call for the federal funds target rate (FFTR) to zero hikes in 2019 from two previously; we continue to expect no hikes in 2020. We also lower our US growth projection to account for the drag from the government shutdown and the potential impact of weaker global growth and sentiment.” “Finally, we lower our inflation forecast on lower energy prices and a weaker global inflation impulse than we expected earlier.” “We believe the FOMC’s pivot reflects its strong desire to avoid this risk. Otherwise, as we expected, it announced plans to gradually wind down the balance-sheet taper, and end it completely around Q3-2019, for the steady-state size of roughly USD 3.6 tn.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/USD eases from 3-week tops, still positive near mid-0.7100s FX Street 4 years Sonia Meskin, US economist at Standard Chartered, notes that the FOMC's March Summary of Economic Projections (SEP) has reflected a change in the bank's reaction function. Key Quotes "Even with real growth projected to remain above potential in 2019, we believe the FOMC will not hike again in this business cycle as it prepares its tools for the next downturn." "To reflect the FOMC's policy shift, we adjust our call for the federal funds target rate (FFTR) to zero hikes in 2019 from two previously; we continue to expect no hikes in 2020. We also lower our US growth projection… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
