With data showing very little sign of the Q2 post-weather bounce that The Fed forecast, and markets quaking in their boots on every 'good' data print, The Fed remains cornered - desperate to hike (to regain some ammo) but needing to lie through their teeth in order to rationalize why...
- *FED FORECASTS IMPLY TWO QUARTER-POINT RATE INCREASES THIS YEAR
- *FED SAYS ECONOMY EXPANDING `MODERATELY,' JOB GROWTH PICKED UP
- *FED REPEATS INTL DEVELOPMENTS TO BE TAKEN INTO ACCOUNT
So the bottom line - The Fed has no idea still, is data-dependent (unless the data disagrees with them), and is now the world's plunge protection team. It seems the IMF's warnings have been ignored.
Pre-FOMC: S&P Futs 2091, 10Y 2.387%, EUR 1.1260, Gold $1178