All Eyes On Bernanke
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On Wednesday, the FOMC will release their latest interest rate decision, but maybe more importantly it will mark the first time the Fed will hold a press conference following the decision.
Chairman Ben Bernanke is expected to field questions from reporters at the conference, which starts at 2:15PM ET and follows the 12:30pm EDT statement.
RBC Capital Market's Fixed Income team doesn't expect much change in the FOMC statement, but believes the conference could offer some interesting insight. RBC's strategists would be surprised if Mr. Bernanke did not forward a view which emphasized that the Fed has room to show patience.
RBC doesn't expect a hike to the funds rate until at least the 2nd-half of 2012. They expect that real interest rates are most likely to rise when the Fed is lifting the policy rate, but decline when policy makers are either on hold or lowering the funds rate.
On the dollar, strategist at RBC said "it will probably continue to carry a soft tone, with many commodities remaining bid, until real rates start to move higher."
They expect any resource-related weakness due to tomorrow's FOMC statement to prove "short lived."
The Fed's press briefing will be broadcast live on the Federal Reserve's website.
Chairman Ben Bernanke is expected to field questions from reporters at the conference, which starts at 2:15PM ET and follows the 12:30pm EDT statement.
RBC Capital Market's Fixed Income team doesn't expect much change in the FOMC statement, but believes the conference could offer some interesting insight. RBC's strategists would be surprised if Mr. Bernanke did not forward a view which emphasized that the Fed has room to show patience.
RBC doesn't expect a hike to the funds rate until at least the 2nd-half of 2012. They expect that real interest rates are most likely to rise when the Fed is lifting the policy rate, but decline when policy makers are either on hold or lowering the funds rate.
On the dollar, strategist at RBC said "it will probably continue to carry a soft tone, with many commodities remaining bid, until real rates start to move higher."
They expect any resource-related weakness due to tomorrow's FOMC statement to prove "short lived."
The Fed's press briefing will be broadcast live on the Federal Reserve's website.
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