No Fed fireworks came from the monetary policy decision today, instead, today’s FOMC meeting shaped the conversation around the timing of the next rate hike in the coming months. As of writing in the midst of Yellen’s presser, it’s been the monetary policy doves who are flying high, rather than the hawks.
Information received since the Federal Open Market Committee met in January suggests that economic activity has been expanding at a moderate pace despite the global economic and financial developments of recent months. Against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.
My confidence is growing that we shall have a decent decline in Eurodollars Reds prior to the FOMC report. More generally, the bullish contingency has been reducing positions while the bearish contingent has remained skittish