ANZ discusses its expectations for this week's FOMC June policy meeting.
"The Federal Open Market Committee (FOMC) meets this week. Given recent dovish comments from Fed officials, we expect a shift to an easing bias. At a minimum, we anticipate a flattening in the dot plot. Chair Powell is likely to reiterate that the FOMC stands ready to support the expansion. We don’t expect a pre-commitment to easing, but acknowledge there are risks to our view," ANZ projects.
"We look for the FOMC to end quantitative tightening now. Our call is for the FOMC to start cutting rates later this year as we anticipate ongoing trade uncertainty to linger and weigh on growth and markets. Easier policy will also provide a needed boost to cyclical inflation," ANZ adds.