Fedspeak points to a ‘live’ meeting in June – Danske Bank

By FXStreet Senior Analyst at Danske Bank Pernille Henneberg has assessed the recent comments by FOMC governors.

Key Quotes

“Four Fed members said the door is open to a hike in June. Bullard, Williams, Kaplan and Lockhart all said in separate remarks that the Fed might hike at the June FOMC meeting but that it depends on incoming data”.

“Lockhart and Kaplan also said the Fed should pay attention to the Brexit vote”.

“In our view, the Fed will wait with hiking until the FOMC meeting in September, which would give it more time to judge incoming data and we will also be past the UK’s EU referendum”.

“A hike in June is priced with a probability around 10% down from 20% a month ago, while a hike in September is priced with a probability below 40%”.
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Source:: FX Street