FOMC could be a ‘non-event’ – UOB

The research team at UOB Group does not expect noted the upcoming FOMC meeting to yield any significant outcome, focusing instead on the June meeting.

Key Quotes

“The Fed Reserve has a meeting and a policy decision scheduled this coming week (26-27 Apr), but it is without any post FOMC press conference by Yellen or review of the FOMC economic projections”.

“The markets may already view this as a non event because based on trading in futures and options data compiled by Bloomberg, the probability of another Fed rate hike in April 2016 FOMC stayed unchanged at 0% which been at 0% since the dovish speech by FOMC Chair Yellen on 29 March 2016 while the chance of a June hike rose to 19.6% (from 13.6% on 18 April)”.

“Perhaps there may be some indications within the FOMC statement to shed some light for the June FOMC outlook, but given the rather long gap of 6 weeks we are unlikely to get a lot of certainty on the timing of the next hike and instead, the officials will most likely continued to keep the next June meeting as a “live” possibility”.