Barclays Research discusses its expectations for tomorrow's FOMC policy meeting.
"We expect the Fed to rein in policy rate expectations in March, with the median dots still showing no lift-off through 2023, despite an upgraded outlook. Fiscal policy is likely to have only short-term effects on activity, while inflation expectations and underlying inflation remain below mandate-consistent levels," Barclays notes.
"We think the Fed is likely to see the economy as in a similar fundamental position at the end of 2023 as it did last December...We still expect the median member to forecast no hikes through the Fed’s forecast horizon. Although recent communications suggest that participants are comfortable with some steepening of the yield curve in light of improved growth fundamentals, we doubt the committee will be eager to ratify expectations of an earlier lift-off," Barclays adds.