Yesterday, USD strengthened against most major currencies except AUD and CAD.
During the monetary policy meeting earlier today, the Federal Reserve held its monetary policy unchanged while making no quantitative easing (QE) tapering announcements. However, the central bank did deliver a hawkish tone, highlight in the rate statement that if further progress is being made towards its maximum employment and price stability goals, then a “moderation in the pace of asset purchases may soon be warranted”.
In the released projection materials, it was indicated that more committee members are now expecting the first interest rate hike to take place in 2022. In terms of economic forecasts, there was a downward revision in GDP for 2021 from the previous projection of 7% to 5.9% but an upward revision was made for 2022 from 3.3% to 3.8% and 2023 from 2.4% to 2.5%. Annual inflation for 2021 and 2022 were also revised upwards while remaining at the same level for 2023. Unemployment rate was revised upwards by 0.3% for 2021 and remained the same for 2022 and 2023.
Adding on to the overall optimistic projections, Fed Chairman Powell also highlighted that the central bank is moving closer towards achieving its goals on “substantial further progress” on inflation and employment.
The flash PMI data will be released later at 2145 (GMT+8).
During the monetary policy meeting earlier today, the Federal Reserve held its monetary policy unchanged while making no quantitative easing (QE) tapering announcements. However, the central bank did deliver a hawkish tone, highlight in the rate statement that if further progress is being made towards its maximum employment and price stability goals, then a “moderation in the pace of asset purchases may soon be warranted”.
In the released projection materials, it was indicated that more committee members are now expecting the first interest rate hike to take place in 2022. In terms of economic forecasts, there was a downward revision in GDP for 2021 from the previous projection of 7% to 5.9% but an upward revision was made for 2022 from 3.3% to 3.8% and 2023 from 2.4% to 2.5%. Annual inflation for 2021 and 2022 were also revised upwards while remaining at the same level for 2023. Unemployment rate was revised upwards by 0.3% for 2021 and remained the same for 2022 and 2023.
Adding on to the overall optimistic projections, Fed Chairman Powell also highlighted that the central bank is moving closer towards achieving its goals on “substantial further progress” on inflation and employment.
The flash PMI data will be released later at 2145 (GMT+8).
- Flash Manufacturing PMI (Forecast: 60.7, Previous: 61.1 revised from 61.2)
- Flash Services PMI (Forecast: 55.1, Previous: 55.1 revised from 55.2)
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