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FOMC ahead, will we see a ‘taper tantrum’ repeat? – Blueprint Capital

FXStreet (Barcelona) - Simon Bowles of Blueprint Capital, comments on the expectations surrounding today’s FOMC meeting.

Key Quotes

“Today the is the FOMC with Yellen preparing (perhaps) to signal that she will start raising rates in June or September, ending six years of quantitative easing. The focus will be on the dropping of the word “Patient” from the communique, opening up the way for a June or September rise.”

“Ray Dalio, one of the world’s most powerful hedge fund managers, said the Fed risks triggering a 1937-style stock market slump; less dramatically IMF head Christine Lagarde has warned of consequent instability in emerging markets and a “taper tantrum” repeat.”

Key message will be that Fed will hike rates meeting-by-meeting basis – KBC

The KBC Bank Research Team views that Fed might remove its ‘patient’ view today, and the key message of Yellen would be that Fed would hike rates on a meeting-to-meeting basis.
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