Bank of America Global Research discusses its expectations for tomorrow's FOMC policy meeting.
"The FOMC meeting on the 17th will be one of the most critical events for the Fed in some time. Fed Chair Powell will have to strike the right balance between a more upbeat assessment of the outlook and the asymmetric FAIT reaction function. The result will be an acknowledgement that liftoff is earlier than believed back in mid-December but that it is still later than markets currently believe,' BofA notes.
"The March FOMC meeting is likely to give a green light to higher rates & belly underperformance...We expect the US dollar to broadly benefit from resumption of US rate upside occurring. Indeed, we think that USD appreciation pressure - moderate so far this year - is poised to accelerate over the remainder of 2021," BofA adds.