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16 May 2013
Forex Flash: Expect Fed focus on Monetary policy - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts believe that apart from data, there will be many Fed officials speaking today on monetary policy and the US economy.
First off, hey note that Philadelphia Fed President Charles Plosser has been an active advocate that the Fed taper asset purchases. Sharing the same view is Dallas Fed President Richard Fisher, who prefers the reduction to take place in mortgage backed securities instead of treasuries. Further, they add that San Francisco Fed President John Williams had earlier suggested that the paring back could take place by summer, but had been careful to maintain the view that the economy has yet to reach the point where QE is no longer needed. Boston Fed Eric Rosengren had joined New York Fed President William Dudley in warning about low inflation before the last FOMC meeting and Dudley will speak next week on May 21. They finish by writing , “We will also hear from Governor Sarah Raskin, who is a strong supporter of QE, on her assessment on the US recovery. In the end, the tone on asset purchase will probably be set by Fed Chairman Ben Bernanke next week, when he testifies before the Joint Economic Committee on May 22.”
First off, hey note that Philadelphia Fed President Charles Plosser has been an active advocate that the Fed taper asset purchases. Sharing the same view is Dallas Fed President Richard Fisher, who prefers the reduction to take place in mortgage backed securities instead of treasuries. Further, they add that San Francisco Fed President John Williams had earlier suggested that the paring back could take place by summer, but had been careful to maintain the view that the economy has yet to reach the point where QE is no longer needed. Boston Fed Eric Rosengren had joined New York Fed President William Dudley in warning about low inflation before the last FOMC meeting and Dudley will speak next week on May 21. They finish by writing , “We will also hear from Governor Sarah Raskin, who is a strong supporter of QE, on her assessment on the US recovery. In the end, the tone on asset purchase will probably be set by Fed Chairman Ben Bernanke next week, when he testifies before the Joint Economic Committee on May 22.”