OctaFX | OctaFX Forex Broker
Open trading account
Back

Bring back Albert Einstein - BAML

FXStreet (Guatemala) - Gustavo Reis, Global Economist at Bank of America Merrill Lynch commented with respect of the FOMC’s considerable time language and, well, the timing of a hike is something we would all like to know.

Key Quotes

"Albert Einstein would have approved of the FOMC's take on its "considerable time" rate guidance. As Fed Chair Janet Yellen noted, there is no fixed mechanical interpretation of a time period."

"Rather, the concept is "highly conditional" on the outlook. With US growth expected to remain solid, this suggests rate hikes in 2015 are very likely. However, given the recent deterioration in the global outlook, the approaching liftoff raises concerns about the global impact of Fed tightening."

"We remain cautiously optimistic on the global liquidity outlook. Contained inflation risks in the US, the Fed's risk management approach, and a global liquidity rotation all argue for a manageable transition."

"That said, policy expectations are increasingly vulnerable to data surprises and financial stability risks. The Fed has come a long way from the tapering tantrum, but communication challenges remain formidable."

AUD/NZD breaks above 1.1100

Despite falling sharply against the US dollar, the aussie is rising significantly against the kiwi and trades at the strongest level in two weeks.
Read more Previous

GBP/USD poised for a weekly loss

GBP/USD is trading lower on the day and poised to close the week in negative territory following two consecutive weeks of recovering from the Scottish referendum-induced slump.
Read more Next
Start livechat