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Saturday 18 March 2017

RBC: We are sincerely surprised by the market reaction - the position of the Fed has become more militant

Experts of RBC were frankly surprised by the market reaction to the outcome of the Federal Reserve and published forecasts, known as "points of Fed", which led to a weakening of the dollar.
Yes, generally short-term forecasts of the Federal Reserve remained unchanged, but in reality the change in the distribution of forecasts is more agresive. If members of the Fed expected three increases in interest rates on December 6, to March 15 their number decreased.
It turns out that currently 82% of the members of the Fed support the idea of ​​three or more increases in interest rates. Experts of RBC suggested that forecasts the outgoing head of the Federal Reserve Bank in Atlanta Dennis Lockhart stored temporarily. If the assumption is true, then head of the Federal Reserve Bank of Minneapolis and the head of the Federal Reserve Bank in St. Louis are the only ones, who does not predict at least three increases in interest rates by the end of 2017.

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