FOMC: Expect a 5bps upward technical adjustment on IOER – Deutsche Bank
The Deutsche Bank Macro Strategists expect no surprises from the Fed interest rate decision due later on Wednesday at 1900 GMT.
“Rates will almost certainly remain on hold with only a technical adjustment of a 5bp upward move on the IOER according to our economists – albeit one which is a close call still.
Our team expect the meeting statement to be mostly unaltered relative to December’s communique and with the absence of an updated Summary of Economic Projections, that leaves Chair Powell’s press conference as the most likely source of new information.
Our team expect the focus of that to be on five topics; the outlook for the policy rate; persistently low inflation and how it relates to the policy review; funding markets and whether T-bill purchases are QE; financial stability risks; and implications for global markets. All that from 7pm GMT.”