A snippet from BoA on the Federal Open Market Committee meeting on Wednesday 28 April 2021 

  • We see the Fed committed to FAIT and reactive not proactive. 

(ps. ICYMI FAIT is Flexible Average Inflation Targeting)

  • We continue to look for the Fed to taper in early 2022, signalling this well in advance-likely six months-and start hiking rates in 2H 2023. 
  • Once the Fed starts hiking, we expect a pace that is faster than current market pricing with a higher terminal rate. 

For more preview, this posted earlier:

A snippet from BoA on the Federal Open Market Committee meeting on Wednesday 28 April 2021 
And, for your central bank fix (if needed) you don’t have to wait until Wednesday – the Bank of Japan is today!

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