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:
And, for your central bank fix (if needed) you don’t have to wait until Wednesday – the Bank of Japan is today!