Interest Rates Calendar

ECB meeting: No new weapons on the battlefield
The refinancing rate was kept unchanged at 1.0%. We expect the ECB to keep rates unchanged for a prolonged period before they begin to hike. The ECB did not bring any new weapons to the battlefield. Soon we should look for signals that the ECB is focusing on exit strategies. The ECB rhetoric on the economic situation was unchanged. They still expect that after a stabilisation phase, positive growth rates should emerge by mid-2010. Details on the covered bond purchase programme will be <p><a href="http://feedads.g.doubleclick.net/~a/Tu9k3OdLZZO9BcA0ZudfY0hmJfM/0/da"><img src="http://feedads.g.doubleclick.net/~a/Tu9k3OdLZZO9BcA0ZudfY0hmJfM/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Tu9k3OdLZZO9BcA0ZudfY0hmJfM/1/da"><img src="http://feedads.g.doubleclick.net/~a/Tu9k3OdLZZO9BcA0ZudfY0hmJfM/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lGX1NkKM0Zg:HNW7G-6B-Bk:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lGX1NkKM0Zg:HNW7G-6B-Bk:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lGX1NkKM0Zg:HNW7G-6B-Bk:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=lGX1NkKM0Zg:HNW7G-6B-Bk:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB preview: It could be a non-event
We are confident that the ECB will leave the refinancing rate unchanged at 1.0%. We expect the ECB to keep rates unchanged for a prolonged period before they begin to hike. The focus will therefore be on the press conference. We will look for signs that the ECB rhetoric is becoming more positive, but we don’t expect much. We do not anticipate the ECB to announce additional measures or top up on already announced measures. All in all, this might be a relatively dull ECB meeting - for a change. <p><a href="http://feedads.g.doubleclick.net/~a/OI-6-UTOy2hs8BTeRzZWyPg_NYU/0/da"><img src="http://feedads.g.doubleclick.net/~a/OI-6-UTOy2hs8BTeRzZWyPg_NYU/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/OI-6-UTOy2hs8BTeRzZWyPg_NYU/1/da"><img src="http://feedads.g.doubleclick.net/~a/OI-6-UTOy2hs8BTeRzZWyPg_NYU/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=OQJbyW3aT0s:B33zDrdHS7s:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=OQJbyW3aT0s:B33zDrdHS7s:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=OQJbyW3aT0s:B33zDrdHS7s:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=OQJbyW3aT0s:B33zDrdHS7s:F7zBnMyn0Lo" border="0"></img></a> </div>

US: Fed extends liquidity facilities
The Federal Reserve issued a press release yesterday evening announcing extensions and some modifications to a number of its liquidity facilities. In general, the interest for taking out liquidity through the various facilities has been on a downward trend. By extending the most popular of the facilities to 1 February 2010, the Fed is ensuring that there will not be an abrupt stop that could disrupt markets. The Fed made it clear in the announcement that it does not expect there will be a need <p><a href="http://feedads.g.doubleclick.net/~a/e6iLeDP30lh-tgyIL_lL_moeewE/0/da"><img src="http://feedads.g.doubleclick.net/~a/e6iLeDP30lh-tgyIL_lL_moeewE/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/e6iLeDP30lh-tgyIL_lL_moeewE/1/da"><img src="http://feedads.g.doubleclick.net/~a/e6iLeDP30lh-tgyIL_lL_moeewE/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=mmCajx838dc:6oq3xdRalfA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=mmCajx838dc:6oq3xdRalfA:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=mmCajx838dc:6oq3xdRalfA:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=mmCajx838dc:6oq3xdRalfA:F7zBnMyn0Lo" border="0"></img></a> </div>

Target rates and monetary easing levels are maintained
Pace of economic contraction is slowing No changes to the securities purchase program Rates likely to remain low for a prolonged period of time The FOMC decided to maintain its target interest rate at 0% to 0.25%. In light of data released during the intermeeting period, the FOMC acknowledged that the pace of economic contraction is slowing, citing the recent improvements in the financial markets, further signs of stabilization in household spending and better alignment of inventories with <p><a href="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/0/da"><img src="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/1/da"><img src="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=jZSf-uhei2I:6VdjHprK-2g:F7zBnMyn0Lo" border="0"></img></a> </div>

Czech Republic: CNB keeps interest rates on hold
At today’s monetary policy setting meeting the Czech central bank decided to leave its key policy rate unchanged at 1.50%. Details The Czech central bank (CNB) surprised markets at its monetary policy setting meeting today when it decided to maintain its key policy rate at 1.50% even though most market participants had expected a further 25bp rate cut. We thought the CNB would leave interest rates on hold. Market reaction: EUR/CZK is marginally higher while 2y yields increased approximately <p><a href="http://feedads.g.doubleclick.net/~a/TB-3U8U9YcQd0C2MBYuzHEAfMjY/0/da"><img src="http://feedads.g.doubleclick.net/~a/TB-3U8U9YcQd0C2MBYuzHEAfMjY/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/TB-3U8U9YcQd0C2MBYuzHEAfMjY/1/da"><img src="http://feedads.g.doubleclick.net/~a/TB-3U8U9YcQd0C2MBYuzHEAfMjY/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=H5ZhL_6-zKA:81eGO2LK1mw:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=H5ZhL_6-zKA:81eGO2LK1mw:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=H5ZhL_6-zKA:81eGO2LK1mw:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=H5ZhL_6-zKA:81eGO2LK1mw:F7zBnMyn0Lo" border="0"></img></a> </div>

US: FOMC - No change in rates
No change in rates, no change in economic outlook, no additional quantitative easing and no liquidity exit from the Fed. Four negatives in the the FOMC statement but only one seemed to register with the currency market, no additional quantitative easing. Treasury rates moved modestly higher and the dollar rallied. The FOMC "expects that inflation will remain subdued for some time", and "that economic conditions are likely to warrant exceptionally low levels of federal funds for an extended <p><a href="http://feedads.g.doubleclick.net/~a/5lv4dBnmNJqa-u-XN7TpP8LQaFE/0/da"><img src="http://feedads.g.doubleclick.net/~a/5lv4dBnmNJqa-u-XN7TpP8LQaFE/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/5lv4dBnmNJqa-u-XN7TpP8LQaFE/1/da"><img src="http://feedads.g.doubleclick.net/~a/5lv4dBnmNJqa-u-XN7TpP8LQaFE/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=CMCwBQfdV3o:wNzUcg1AZgo:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=CMCwBQfdV3o:wNzUcg1AZgo:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=CMCwBQfdV3o:wNzUcg1AZgo:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=CMCwBQfdV3o:wNzUcg1AZgo:F7zBnMyn0Lo" border="0"></img></a> </div>

US: Fed's deflation fears are easing
The FOMC statement was less dovish than we had expected. The committee decided to retain the target range for the fed funds rate and leave the size, timing and scope of the Fed’s security purchase programmes unchanged. In general, the committee has become less worried about deflation and more optimistic on growth. Still, inflation pressures are regarded as absent with slack in the economy set to keep cost pressures in check despite the recent rise in commodity prices. The statement repeated <p><a href="http://feedads.g.doubleclick.net/~a/VWSkViftUnj5zCkF59sjrKya7LM/0/da"><img src="http://feedads.g.doubleclick.net/~a/VWSkViftUnj5zCkF59sjrKya7LM/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/VWSkViftUnj5zCkF59sjrKya7LM/1/da"><img src="http://feedads.g.doubleclick.net/~a/VWSkViftUnj5zCkF59sjrKya7LM/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9gnTFzIpFIE:DhZ6dduqtWI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9gnTFzIpFIE:DhZ6dduqtWI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9gnTFzIpFIE:DhZ6dduqtWI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=9gnTFzIpFIE:DhZ6dduqtWI:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC says economic contraction is slowing
The FOMC elected to hold rates unchanged as expected, to maintain the current level of bond purchases and said deflation is no longer a concern. The FOMC said interest rates would remain low for an extended period. The FOMC said that inflation is likely to remain subdued for some time and noted that the pace of the economic contraction has slowed. In the April policy statement the FOMC said the pace of economic contraction appeared to be somewhat slower. The FOMC did not discuss an exit <p><a href="http://feedads.g.doubleclick.net/~a/hd76jESMBICLsUUd23N7qeHnVAQ/0/da"><img src="http://feedads.g.doubleclick.net/~a/hd76jESMBICLsUUd23N7qeHnVAQ/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/hd76jESMBICLsUUd23N7qeHnVAQ/1/da"><img src="http://feedads.g.doubleclick.net/~a/hd76jESMBICLsUUd23N7qeHnVAQ/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=kdenzaj_7hg:alJoUMuhD4I:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=kdenzaj_7hg:alJoUMuhD4I:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=kdenzaj_7hg:alJoUMuhD4I:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=kdenzaj_7hg:alJoUMuhD4I:F7zBnMyn0Lo" border="0"></img></a> </div>

Poland: NBP cuts by 25bp as expected
As expected the Polish central bank today cut its key policy rate by 25bp to 3.50%. We believe that this cut marks the end of the easing cycle. Details As expected, the Polish central bank (NBP) today announced that it has cut its key policy rate by 25bp to 3.50%. This was both the market consensus and our expectation. Today’s rate cut came out after two consecutive months of unchanged interest rates. <p><a href="http://feedads.g.doubleclick.net/~a/oMwHoNI_PwJ-A-ZsRsGBhiPLi3E/0/da"><img src="http://feedads.g.doubleclick.net/~a/oMwHoNI_PwJ-A-ZsRsGBhiPLi3E/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/oMwHoNI_PwJ-A-ZsRsGBhiPLi3E/1/da"><img src="http://feedads.g.doubleclick.net/~a/oMwHoNI_PwJ-A-ZsRsGBhiPLi3E/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IYAUaHxV1mc:PhFxslrlvzE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IYAUaHxV1mc:PhFxslrlvzE:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IYAUaHxV1mc:PhFxslrlvzE:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=IYAUaHxV1mc:PhFxslrlvzE:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC: Preview June Rate Decision
Current Base Rate: 0.00% to 0.25% Consensus: 0.00% to 0.25% Expect a more sanguine economic outlook, though will likely say recovery to be slow and protracted Show a commitment to long term ZIRP (zero interest rate policy) and play down inflation in the near term FOMC likely to keep its asset purchase program targets unchanged; though could spring a surprise by altering the size/balance of Treasury and mortgage securities it purchases after the recent spike higher in yields FOMC could outline <p><a href="http://feedads.g.doubleclick.net/~a/Zpt7tgoVI8YCkcdZ6TAA3orYj-Q/0/da"><img src="http://feedads.g.doubleclick.net/~a/Zpt7tgoVI8YCkcdZ6TAA3orYj-Q/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Zpt7tgoVI8YCkcdZ6TAA3orYj-Q/1/da"><img src="http://feedads.g.doubleclick.net/~a/Zpt7tgoVI8YCkcdZ6TAA3orYj-Q/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=-8RwGxe8Yu4:1HZOoyy3iKg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=-8RwGxe8Yu4:1HZOoyy3iKg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=-8RwGxe8Yu4:1HZOoyy3iKg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=-8RwGxe8Yu4:1HZOoyy3iKg:F7zBnMyn0Lo" border="0"></img></a> </div>

The Fed faces a tough balancing act
The Federal Open Market Committee (FOMC) will meet on June 23rd and 24th. The FOMC is expected to hold rate policy steady and its target range for interest rates unchanged at 0.00- 0.25%.The FOMC is also expected to maintain its current target for the purchase of bonds and mortgage debt. How the Fed elects to respond, if at all to the recent rise in US mortgage and long-term bond yields will be key to the market impact of the FOMC meeting. Over the past few weeks’ speculation emerged that the <p><a href="http://feedads.g.doubleclick.net/~a/lxEv7IlDyXJyPSnvR2k4kqhYjF0/0/da"><img src="http://feedads.g.doubleclick.net/~a/lxEv7IlDyXJyPSnvR2k4kqhYjF0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/lxEv7IlDyXJyPSnvR2k4kqhYjF0/1/da"><img src="http://feedads.g.doubleclick.net/~a/lxEv7IlDyXJyPSnvR2k4kqhYjF0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=V-3NKD0bkeA:orc9lqLIVSE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=V-3NKD0bkeA:orc9lqLIVSE:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=V-3NKD0bkeA:orc9lqLIVSE:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=V-3NKD0bkeA:orc9lqLIVSE:F7zBnMyn0Lo" border="0"></img></a> </div>

Hungary: CB kept the base rate unchanged
CB kept the base rate unchanged (9.50%) At its today’s rate setting meeting, the monetary council of the CB kept the base rate unchanged (9.50%), in line with expectations. The statement of the council will be released and the governor’s press conference will start at 3 pm. <p><a href="http://feedads.g.doubleclick.net/~a/f4R4o4iOs7mOxXvDdLOQeXELF2M/0/da"><img src="http://feedads.g.doubleclick.net/~a/f4R4o4iOs7mOxXvDdLOQeXELF2M/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/f4R4o4iOs7mOxXvDdLOQeXELF2M/1/da"><img src="http://feedads.g.doubleclick.net/~a/f4R4o4iOs7mOxXvDdLOQeXELF2M/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=EXcN4IfSxj0:dAaMZiHM-TM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=EXcN4IfSxj0:dAaMZiHM-TM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=EXcN4IfSxj0:dAaMZiHM-TM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=EXcN4IfSxj0:dAaMZiHM-TM:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC: preview of policy meeting
On Wednesday, at 20:15 CET, the Federal Open Market Committee (FOMC) is set to announce its policy decision. In line with consensus we expect the FOMC to keep the Fed funds rate unchanged in the range of 0.00-0.25%. The meeting will be a balancing act. On the one hand, there are members of the FOMC who fear that inflation expectations will run rampant unless the Fed states that it is ready with exit strategies. On the other hand, other members worry about the market’s aggressive expectations <p><a href="http://feedads.g.doubleclick.net/~a/dAEk7-IF3ZoTG4yWAE9RMmG6VwI/0/da"><img src="http://feedads.g.doubleclick.net/~a/dAEk7-IF3ZoTG4yWAE9RMmG6VwI/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/dAEk7-IF3ZoTG4yWAE9RMmG6VwI/1/da"><img src="http://feedads.g.doubleclick.net/~a/dAEk7-IF3ZoTG4yWAE9RMmG6VwI/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IAQV8T-v19I:2yvLaOJRvBs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IAQV8T-v19I:2yvLaOJRvBs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=IAQV8T-v19I:2yvLaOJRvBs:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=IAQV8T-v19I:2yvLaOJRvBs:F7zBnMyn0Lo" border="0"></img></a> </div>

Switzerland: SNB rate decision June 18th
The Swiss National Bank (SNB) will hold its monetary policy meeting on Thursday June 18th.The SNB is expected to hold rate policy steady at 0.00%-0.75%.Recent Swiss economic data confirms deteriorating Swiss economy and declining inflation. Monday, Switzerland reported that producer and import prices declined the most in two decades. Swiss Q1 GDP contracted at its fastest pace in 15 years and Swiss May inflation fell at its fastest rate in 50 years. Swiss exports fell 14% since the start of <p><a href="http://feedads.g.doubleclick.net/~a/eh8weDO3zjg6qw9qmb8D9EFLmcs/0/da"><img src="http://feedads.g.doubleclick.net/~a/eh8weDO3zjg6qw9qmb8D9EFLmcs/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/eh8weDO3zjg6qw9qmb8D9EFLmcs/1/da"><img src="http://feedads.g.doubleclick.net/~a/eh8weDO3zjg6qw9qmb8D9EFLmcs/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=pILrbRBjlFI:tMuf8bWa4-w:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=pILrbRBjlFI:tMuf8bWa4-w:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=pILrbRBjlFI:tMuf8bWa4-w:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=pILrbRBjlFI:tMuf8bWa4-w:F7zBnMyn0Lo" border="0"></img></a> </div>

BoE Preview: June Minutes
MPC is expected to vote unanimously to leave rates on hold at 0.5% and leave the QE programme size unchanged at GBP 125bln Today’s announcement is unlikely to spring any major surprises with focus again on discussions surrounding the QE program following the Bank’s brief statement on June 4th that the current programme would take another 2 months to complete. Recent economic data The MPC will likely pay note to the glimmers of improvement that have been seen in various economic indicators <p><a href="http://feedads.g.doubleclick.net/~a/MBLcnLRy4kzlWmT__J9cnkmU1fo/0/da"><img src="http://feedads.g.doubleclick.net/~a/MBLcnLRy4kzlWmT__J9cnkmU1fo/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/MBLcnLRy4kzlWmT__J9cnkmU1fo/1/da"><img src="http://feedads.g.doubleclick.net/~a/MBLcnLRy4kzlWmT__J9cnkmU1fo/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=vUwn_S5JIr8:kb0cx2fER5A:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=vUwn_S5JIr8:kb0cx2fER5A:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=vUwn_S5JIr8:kb0cx2fER5A:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=vUwn_S5JIr8:kb0cx2fER5A:F7zBnMyn0Lo" border="0"></img></a> </div>

BOE Preview: June interest rate decision
MPC is expected to vote unanimously to leave rates on hold at 0.5% and leave the QE programme size unchanged at GBP 125bln Today’s announcement is unlikely to spring any major surprises with focus again on discussions surrounding the QE program following the Bank’s brief statement on June 4th that the current programme would take another 2 months to complete. Recent economic data The MPC will likely pay note to the glimmers of improvement that have been seen in various economic indicators <p><a href="http://feedads.g.doubleclick.net/~a/EjDVZhF0KQcKFvlC3x9x1oPa6G0/0/da"><img src="http://feedads.g.doubleclick.net/~a/EjDVZhF0KQcKFvlC3x9x1oPa6G0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/EjDVZhF0KQcKFvlC3x9x1oPa6G0/1/da"><img src="http://feedads.g.doubleclick.net/~a/EjDVZhF0KQcKFvlC3x9x1oPa6G0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FJEVVGF6gyQ:YrZiBfJmf1M:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FJEVVGF6gyQ:YrZiBfJmf1M:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FJEVVGF6gyQ:YrZiBfJmf1M:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=FJEVVGF6gyQ:YrZiBfJmf1M:F7zBnMyn0Lo" border="0"></img></a> </div>

Japan: BoJ slightly more positive on the economy
Bank of Japan (BoJ) as expected left its leading interest rate unchanged at 0.1% and did not see the need for further non-conventional easing. BoJ turned marginally more positive on the economy. However, the main message continues to be that the economy is bottoming out. The focus at the future monetary meetings will mainly be on changes in BoJ’s view of the economy. The next major change in outlook by the bank should be to regard the economy as expanding. However, this change is unlikely to <p><a href="http://feedads.g.doubleclick.net/~a/K3UT6hw5sQcdmYQb23hnNdcQ-Uw/0/da"><img src="http://feedads.g.doubleclick.net/~a/K3UT6hw5sQcdmYQb23hnNdcQ-Uw/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/K3UT6hw5sQcdmYQb23hnNdcQ-Uw/1/da"><img src="http://feedads.g.doubleclick.net/~a/K3UT6hw5sQcdmYQb23hnNdcQ-Uw/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lHCqw6V4pUM:nSI1lNA5SWI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lHCqw6V4pUM:nSI1lNA5SWI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lHCqw6V4pUM:nSI1lNA5SWI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=lHCqw6V4pUM:nSI1lNA5SWI:F7zBnMyn0Lo" border="0"></img></a> </div>

Japan: Bank of Japan preview
With signs that the economy is stabilising and financial stress easing, we do not expect BoJ to announce new quantitative easing measures in connection with the close of its monetary meeting tomorrow. BoJ’s view of the economy is expected to be marginally more positive. However, a substantial change in its view of the economy is more likely to happen at the July meeting. We expect BoJ to start tightening in Q3 10. However, a ‘technical’ rate hike to improve the functionality of the money <p><a href="http://feedads.g.doubleclick.net/~a/QMZ7nmsQ1CHyzEE99XN1megWJkA/0/da"><img src="http://feedads.g.doubleclick.net/~a/QMZ7nmsQ1CHyzEE99XN1megWJkA/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/QMZ7nmsQ1CHyzEE99XN1megWJkA/1/da"><img src="http://feedads.g.doubleclick.net/~a/QMZ7nmsQ1CHyzEE99XN1megWJkA/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lsl_wATLNb8:bt7EKj-dF3o:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lsl_wATLNb8:bt7EKj-dF3o:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lsl_wATLNb8:bt7EKj-dF3o:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=lsl_wATLNb8:bt7EKj-dF3o:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB meeting: Positive signals ignored
- ECB kept the refinancing rate unchanged at 1.0%. We expect the interest rate to be kept on hold for at least a year. - Staff projections for growth were revised downwards – in particular for 2009. The ECB projects the economic decline to be slower for the rest of the year than it was in Q1, but does not see positive growth before mid 2010. We believe this is far too negative. - The purchase of covered bonds for EUR 60bn will be directed towards purchases in both the primary and secondary <p><a href="http://feedads.g.doubleclick.net/~a/Jpk2hSTW6d31aLOfOI8xG2qRuZA/0/da"><img src="http://feedads.g.doubleclick.net/~a/Jpk2hSTW6d31aLOfOI8xG2qRuZA/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Jpk2hSTW6d31aLOfOI8xG2qRuZA/1/da"><img src="http://feedads.g.doubleclick.net/~a/Jpk2hSTW6d31aLOfOI8xG2qRuZA/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e5TG9SNB4aQ:nJahDNogLM4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e5TG9SNB4aQ:nJahDNogLM4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e5TG9SNB4aQ:nJahDNogLM4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=e5TG9SNB4aQ:nJahDNogLM4:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB Review: no surprises
As expected, the ECB left all the rates unchanged, with the refi standing at 1.00% , and unveiled the relevant details of the upcoming covered bonds purchase program. The main points of today’s press conference are. On the "traditional" monetary policy front: The ECB confirms that the 1.0% refi rate level is appropriate at this time, but also that it is not a pre-decided floor . We still believe rates will remain at 1.0%, as long as that the ECB’s (and our) baseline scenario holds. Staff <p><a href="http://feedads.g.doubleclick.net/~a/ls9Cu9in8tJQiDN95v3lpBv9TKE/0/da"><img src="http://feedads.g.doubleclick.net/~a/ls9Cu9in8tJQiDN95v3lpBv9TKE/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/ls9Cu9in8tJQiDN95v3lpBv9TKE/1/da"><img src="http://feedads.g.doubleclick.net/~a/ls9Cu9in8tJQiDN95v3lpBv9TKE/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o2ZdBOx42No:IjBlJt4Fwqc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o2ZdBOx42No:IjBlJt4Fwqc:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o2ZdBOx42No:IjBlJt4Fwqc:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=o2ZdBOx42No:IjBlJt4Fwqc:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB preview: June interest rate decision
ECB rates approach bottom at 1%, what now? “Enhanced credit support” Downward revisions to staff forecasts ECB rates approach bottom at 1%, what now? ECB is widely expected to keep interest rates unchanged at 1% following a cut of 325bps since October 2008. Therefore, the focus will be very much on the ECB plan to purchase EUR 60bln of covered bonds. Also, markets will be on the look for updated forecasts on inflation and GDP growth for 2009 and 2010, which are likely to be revised markedly <p><a href="http://feedads.g.doubleclick.net/~a/wX6Qg08tqv8bJqp081e92i2ic60/0/da"><img src="http://feedads.g.doubleclick.net/~a/wX6Qg08tqv8bJqp081e92i2ic60/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/wX6Qg08tqv8bJqp081e92i2ic60/1/da"><img src="http://feedads.g.doubleclick.net/~a/wX6Qg08tqv8bJqp081e92i2ic60/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=PwbGa-1uPUQ:kb-zPWHhyWU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=PwbGa-1uPUQ:kb-zPWHhyWU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=PwbGa-1uPUQ:kb-zPWHhyWU:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=PwbGa-1uPUQ:kb-zPWHhyWU:F7zBnMyn0Lo" border="0"></img></a> </div>

BOE Preview: June interest rate decision
Current Base Rate: 0.50% Consensus: 0.50% The MPC is expected to keep rates on hold for a third month at its June meeting and adopt a 'wait and see' approach as economic indicators, show some signs of improvement in the economy. It remains a moot point why the BOE chose not to deploy the additional GBP 25bln assigned for quantitative easing (QE) after a dovish May Inflation Report pointed to an uncertain outlook, as well as a 'relatively slow and protracted' recovery. The BOE may have felt <p><a href="http://feedads.g.doubleclick.net/~a/o4-wWwpOEfZmDZTCHStyUWNWp_w/0/da"><img src="http://feedads.g.doubleclick.net/~a/o4-wWwpOEfZmDZTCHStyUWNWp_w/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/o4-wWwpOEfZmDZTCHStyUWNWp_w/1/da"><img src="http://feedads.g.doubleclick.net/~a/o4-wWwpOEfZmDZTCHStyUWNWp_w/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1ieyzBv6Qgg:PqcjnX_MS1E:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1ieyzBv6Qgg:PqcjnX_MS1E:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1ieyzBv6Qgg:PqcjnX_MS1E:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=1ieyzBv6Qgg:PqcjnX_MS1E:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes April 28-29, 2009
Signs of stabilization in economic and financial activity Risks of deflation have diminished Interest rates are expected to remain unchanged The FOMC agreed that the near-term economic outlook has improved, but there are still “significant downside risks.” In addition, financial market conditions have strengthened but the system remains vulnerable to shocks and credit markets are still weak. Staff revised up its forecasts for 2H09 and 2010 after revising them down in March in response to <p><a href="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/0/da"><img src="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/1/da"><img src="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=5hyMqCtnVf0:vHxqyTQ6kow:F7zBnMyn0Lo" border="0"></img></a> </div>

The FOMC acknowledged signs of stabilization
Target rates of 0%-0.25% are maintained Signs of stabilization in the economy but activity will remain weak for some time Downside risks to inflation continue The FOMC decided to maintain its target interest rate at 0% to 0.25%. In the intermeeting period, the economy continued to contract “though the pace of contraction appears to be somewhat slower.” Household spending, in particular, has shown signs of stabilization, which is demonstrated by today’s positive PCE results. The overall message <p><a href="http://feedads.g.doubleclick.net/~a/sLfkiZM6pZLn5k5hoD3TTraSsOE/0/da"><img src="http://feedads.g.doubleclick.net/~a/sLfkiZM6pZLn5k5hoD3TTraSsOE/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/sLfkiZM6pZLn5k5hoD3TTraSsOE/1/da"><img src="http://feedads.g.doubleclick.net/~a/sLfkiZM6pZLn5k5hoD3TTraSsOE/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yjnpFqMbkfk:cLRuGco7ZLM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yjnpFqMbkfk:cLRuGco7ZLM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yjnpFqMbkfk:cLRuGco7ZLM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=yjnpFqMbkfk:cLRuGco7ZLM:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed kept its target rate unaltered and intensifies quantitative easing
The economic outlook worsened Fed significantly increased the size of its balance sheet Similar measures are likely in the near future The FOMC decided to maintain its target interest rate at 0 to 0.25%. During the intermeeting period, economic conditions remained weak as “Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending.” In addition, financial instability has prompted firms to scale back investment, while exports of <p><a href="http://feedads.g.doubleclick.net/~a/iVPqJZq1DJiVIJZWgaRsi5gsyaY/0/da"><img src="http://feedads.g.doubleclick.net/~a/iVPqJZq1DJiVIJZWgaRsi5gsyaY/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/iVPqJZq1DJiVIJZWgaRsi5gsyaY/1/da"><img src="http://feedads.g.doubleclick.net/~a/iVPqJZq1DJiVIJZWgaRsi5gsyaY/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=tuzdZFY-ER0:2yxCGmsqKQM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=tuzdZFY-ER0:2yxCGmsqKQM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=tuzdZFY-ER0:2yxCGmsqKQM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=tuzdZFY-ER0:2yxCGmsqKQM:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes January 27-28, 2009
Downside risks to growth intensified  FOMC discussed additional measures to boost recovery We expect interest rates to remain unchanged FOMC viewed credit conditions as extremely tight, “with financial markets fragile and some parts of the banking sector under substantial stress.” Yet, FOMC highlighted signs of recovery in markets receiving relief from the different liquidity facilities. Staff revised downwards its forecast for 1H09, as weaker-thanexpected economic releases more than <p><a href="http://feedads.g.doubleclick.net/~a/2SzdRJDHPypJJrY5nwtDWsRjsJk/0/da"><img src="http://feedads.g.doubleclick.net/~a/2SzdRJDHPypJJrY5nwtDWsRjsJk/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/2SzdRJDHPypJJrY5nwtDWsRjsJk/1/da"><img src="http://feedads.g.doubleclick.net/~a/2SzdRJDHPypJJrY5nwtDWsRjsJk/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=DMAPprIfM8E:wr7pl6r7Vxs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=DMAPprIfM8E:wr7pl6r7Vxs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=DMAPprIfM8E:wr7pl6r7Vxs:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=DMAPprIfM8E:wr7pl6r7Vxs:F7zBnMyn0Lo" border="0"></img></a> </div>

Bernanke's Speech: The Crisis and the Policy Response
Further alternative measures are likely to be implemented in the short-run Fed will continue using its “credit easing” strategy and keep interest rates low subjet to economic outcomes Bernanke highlighted a significant degree of uncertainty surrounding the economic outlook. "The global economy will recover, but the timing and strength of the recovery are highly uncertain." There was also an explicit recognition that former steps have not been enough to restore the financial meltdown, opening <p><a href="http://feedads.g.doubleclick.net/~a/BttE5BeK8twgYcxl8zkiJlVaVzg/0/da"><img src="http://feedads.g.doubleclick.net/~a/BttE5BeK8twgYcxl8zkiJlVaVzg/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/BttE5BeK8twgYcxl8zkiJlVaVzg/1/da"><img src="http://feedads.g.doubleclick.net/~a/BttE5BeK8twgYcxl8zkiJlVaVzg/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ELFCD4WY3xk:MSiwuFbL7Fg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ELFCD4WY3xk:MSiwuFbL7Fg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ELFCD4WY3xk:MSiwuFbL7Fg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=ELFCD4WY3xk:MSiwuFbL7Fg:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed economic outlook deteriorates further
FOMC Minutes December 15-16, 2008 The Comittee discussed extensively additional ways to stimulate the economy Fed economic outlook deteriorates further, while downside risks to inflation intensify Participants agreed that economic conditions worsened considerably in the intermeeting period as “the adverse feedback loop between financial conditions and economic performance had intensified”. Members agreed that “the uncertainty surrounding the outlook was considerable and that downside risks to <p><a href="http://feedads.g.doubleclick.net/~a/sx0N7F32wTRLrGAWrG1108s3NUs/0/da"><img src="http://feedads.g.doubleclick.net/~a/sx0N7F32wTRLrGAWrG1108s3NUs/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/sx0N7F32wTRLrGAWrG1108s3NUs/1/da"><img src="http://feedads.g.doubleclick.net/~a/sx0N7F32wTRLrGAWrG1108s3NUs/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=D12yYv471VI:bBZiBZUHYkg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=D12yYv471VI:bBZiBZUHYkg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=D12yYv471VI:bBZiBZUHYkg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=D12yYv471VI:bBZiBZUHYkg:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed cut its target rate to the lowest level on record
• The economic outlook worsened and FOMC expect inflation to moderate further • Fed funds are likely to remain low in 2009 and 2010 • Exceptional measures will follow In an unprecedented decision, FOMC lowered its target interest rate to a range between 0 and 0.25% from a previous 1% (it has reached a historical low). The Board of Governors decided to cut the discount rate by 75bp to 0.5%. Rates are likely to remain at these levels in 2009 and very probably also in 2010. In the intermeeting <p><a href="http://feedads.g.doubleclick.net/~a/CswLnbL7XUaT5kwqPFqLQULa-LA/0/da"><img src="http://feedads.g.doubleclick.net/~a/CswLnbL7XUaT5kwqPFqLQULa-LA/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/CswLnbL7XUaT5kwqPFqLQULa-LA/1/da"><img src="http://feedads.g.doubleclick.net/~a/CswLnbL7XUaT5kwqPFqLQULa-LA/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=LSpWvhXE1z0:aMK_RMKENhw:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=LSpWvhXE1z0:aMK_RMKENhw:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=LSpWvhXE1z0:aMK_RMKENhw:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=LSpWvhXE1z0:aMK_RMKENhw:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed expects the economy to contract moderately in 2H08 and 1H09
FOMC Minutes October 28-29th 2008 Fed expects the economy to contract moderately in 2H08 and 1H09 and to overall grow at around zero in 2009 Some participants saw risks to the downside on inflation We expect an additional rate cut on December 16th, 2008 The staff reduced its forecast for economic activity in 2H08, 2009 and 2010. It expected GDP to contract in 4Q08. Moreover, it predicted “that real GDP would continue to contract somewhat in the first half of 2009 and then rise in the second <p><a href="http://feedads.g.doubleclick.net/~a/_qsA1OuNdelpLd5H1N1gjzQMmpY/0/da"><img src="http://feedads.g.doubleclick.net/~a/_qsA1OuNdelpLd5H1N1gjzQMmpY/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/_qsA1OuNdelpLd5H1N1gjzQMmpY/1/da"><img src="http://feedads.g.doubleclick.net/~a/_qsA1OuNdelpLd5H1N1gjzQMmpY/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=chHUSKoxLx4:XeQGF_-_gPw:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=chHUSKoxLx4:XeQGF_-_gPw:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=chHUSKoxLx4:XeQGF_-_gPw:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=chHUSKoxLx4:XeQGF_-_gPw:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed appears more concerned on economic growth
FOMC Meeting October 29th Fed appears more concerned on economic growth In contrast, the outlook for inflation has improved FOMC expects that the rate cut along with other measures, will help to alleviate the financial crisis However, members expect a slow recovery FOMC lowered its target for the federal funds rate 50 basis points to 1%. The move was widely expected by market participants. On the economic front, the statement remained pessimistic as it stressed that “the pace of economic <p><a href="http://feedads.g.doubleclick.net/~a/63YCbvwYlRK7ft69Mw3CPr2_MY4/0/da"><img src="http://feedads.g.doubleclick.net/~a/63YCbvwYlRK7ft69Mw3CPr2_MY4/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/63YCbvwYlRK7ft69Mw3CPr2_MY4/1/da"><img src="http://feedads.g.doubleclick.net/~a/63YCbvwYlRK7ft69Mw3CPr2_MY4/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=6DnhwVl0_ts:FNgooJFTRWE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=6DnhwVl0_ts:FNgooJFTRWE:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=6DnhwVl0_ts:FNgooJFTRWE:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=6DnhwVl0_ts:FNgooJFTRWE:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Policy Action October 8
• FOMC lowered its target interest rate by 50bp to 1.5% • The move is part of a global joint effort to alleviate financial stress around the world • Fed movement was widely expected by market participants • Fed recent communication and today’s action confirm that downside risks to growth have increased dramatically • Further rate cuts cannot be ruled out if conditions worsen Press Release FOMC Policy Action October 8, 2008 The Federal Open Market Committee has decided to lower its target for <p><a href="http://feedads.g.doubleclick.net/~a/exAR9DdY3DLKOZuoqENIKHHVWZQ/0/da"><img src="http://feedads.g.doubleclick.net/~a/exAR9DdY3DLKOZuoqENIKHHVWZQ/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/exAR9DdY3DLKOZuoqENIKHHVWZQ/1/da"><img src="http://feedads.g.doubleclick.net/~a/exAR9DdY3DLKOZuoqENIKHHVWZQ/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=UUGg3OEoXCM:hB9jvGwpavA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=UUGg3OEoXCM:hB9jvGwpavA:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=UUGg3OEoXCM:hB9jvGwpavA:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=UUGg3OEoXCM:hB9jvGwpavA:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes October 7
• Downside risks to growth have intensified • Members considered to lower rates if conditions worsen • Thus, we expect further rate cuts According to the Minutes, economic indicators reviewed at the meeting showed further deterioration in labor markets. In addition, consumer spending weakened noticeably and residential investment continued to decline. Core inflation eased somewhat in August. The staff revised down its 2009 GDP growth forecast as “the earlier run-up in oil prices, weakened <p><a href="http://feedads.g.doubleclick.net/~a/t_vCVZ3rADh68d5khkEfTWGsOag/0/da"><img src="http://feedads.g.doubleclick.net/~a/t_vCVZ3rADh68d5khkEfTWGsOag/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/t_vCVZ3rADh68d5khkEfTWGsOag/1/da"><img src="http://feedads.g.doubleclick.net/~a/t_vCVZ3rADh68d5khkEfTWGsOag/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MtvdQNEd1Tk:VjxBz1s_RSI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MtvdQNEd1Tk:VjxBz1s_RSI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MtvdQNEd1Tk:VjxBz1s_RSI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=MtvdQNEd1Tk:VjxBz1s_RSI:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes of August 5th
* Base scenario includes a slowdown throughout 2008 and relatively high (although temporary) inflation rates * Members gave equal weight to growing growth and inflation risks * The minutes explicitly mentioned that the Board expects the next interest rate move to be a rate hike. But did not commit to such move anytime soon The minutes for August’ FOMC meeting reinforced the views we expressed in our last Fed Watch. The Fed has purposely stirred from its July’s message, time when it expressed <p><a href="http://feedads.g.doubleclick.net/~a/obBBrcPeQVXYnn2UC84x7JG9V3A/0/da"><img src="http://feedads.g.doubleclick.net/~a/obBBrcPeQVXYnn2UC84x7JG9V3A/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/obBBrcPeQVXYnn2UC84x7JG9V3A/1/da"><img src="http://feedads.g.doubleclick.net/~a/obBBrcPeQVXYnn2UC84x7JG9V3A/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jtmqE95yCQ0:YOske9gdYCM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jtmqE95yCQ0:YOske9gdYCM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jtmqE95yCQ0:YOske9gdYCM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=jtmqE95yCQ0:YOske9gdYCM:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes of June 24-25
• Members recognized that risks to growth persisted and that risks to inflation had risen • Less consensus on risk assessments. All members saw rising risks, but some viewed the balance of risks tilted towards inflation. • The Board is managing growing uncertainty about the outlook, thus justifying a “wait and see” policy. One day after Bernanke's testimony in Congress, The Fed released the minutes for last month's FOMC meeting. As it was expected after the hawkish statement that accompanied <p><a href="http://feedads.g.doubleclick.net/~a/BdC5w3fSobwU2W6THolDhyNGLD8/0/da"><img src="http://feedads.g.doubleclick.net/~a/BdC5w3fSobwU2W6THolDhyNGLD8/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/BdC5w3fSobwU2W6THolDhyNGLD8/1/da"><img src="http://feedads.g.doubleclick.net/~a/BdC5w3fSobwU2W6THolDhyNGLD8/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=280fYljI4ZU:dHqO-LYwbSU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=280fYljI4ZU:dHqO-LYwbSU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=280fYljI4ZU:dHqO-LYwbSU:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=280fYljI4ZU:dHqO-LYwbSU:F7zBnMyn0Lo" border="0"></img></a> </div>

Semiannual Monetary Policy Report to the Congress
• Fed assistance to Fannie and Freddie is temporary, while Congress decides how to proceed • Bernanke indirectly supported Congress proposal to help households facing foreclosure • Rising uncertainty for both future growth and inflation. FOMC will assess incoming information as it becomes available Bernanke testified before Congress amid growing concerns about the financial condition of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Bernanke assured Congress that the <p><a href="http://feedads.g.doubleclick.net/~a/JkEZKhkeWodUFsYtFHelSmXSo7c/0/da"><img src="http://feedads.g.doubleclick.net/~a/JkEZKhkeWodUFsYtFHelSmXSo7c/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/JkEZKhkeWodUFsYtFHelSmXSo7c/1/da"><img src="http://feedads.g.doubleclick.net/~a/JkEZKhkeWodUFsYtFHelSmXSo7c/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=XXGmvP5e5Xc:XN1pfe6lcKo:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=XXGmvP5e5Xc:XN1pfe6lcKo:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=XXGmvP5e5Xc:XN1pfe6lcKo:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=XXGmvP5e5Xc:XN1pfe6lcKo:F7zBnMyn0Lo" border="0"></img></a> </div>

First Line of Defense: Hawkish Wording
• The Fed maintained its target rate at 2%. But the statement was hawkish in tone, in line with recent speeches of Board members • FOMC is now more concern with risks to inflation than with risks to the growth outlook • While we expect a pause in its next meeting August 5th, the Fed will not hesitate to act if inflationary pressures increase further or if inflation expectations continue to deteriorate Inflationary Risks continue to rise, while growth drags. The Federal Open Market Committee <p><a href="http://feedads.g.doubleclick.net/~a/I9axAVC2cy2ihaIiQT7-wy_Fgek/0/da"><img src="http://feedads.g.doubleclick.net/~a/I9axAVC2cy2ihaIiQT7-wy_Fgek/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/I9axAVC2cy2ihaIiQT7-wy_Fgek/1/da"><img src="http://feedads.g.doubleclick.net/~a/I9axAVC2cy2ihaIiQT7-wy_Fgek/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RS_NqdeKklU:umd2rZY-bmI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RS_NqdeKklU:umd2rZY-bmI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RS_NqdeKklU:umd2rZY-bmI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=RS_NqdeKklU:umd2rZY-bmI:F7zBnMyn0Lo" border="0"></img></a> </div>

Making Sense of Increased Hawkishness
• Pressures to both growth and inflation persist • Lower marginal benefits of further rate cuts and higher inflation risk point to a prolonged pause • Fed will keep its options open In its next meeting the FOMC will probably maintain rates at 2%. After pursuing aggressive rate cuts for the last 10 months, we expect this to be the first meeting where the FOMC keeps rates constant, thus suggesting a floor in the current interest rate cycle. The expected pause should not be interpreted as the end <p><a href="http://feedads.g.doubleclick.net/~a/PZnvDnK6f6SxCpP-76aIAGUJfTU/0/da"><img src="http://feedads.g.doubleclick.net/~a/PZnvDnK6f6SxCpP-76aIAGUJfTU/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/PZnvDnK6f6SxCpP-76aIAGUJfTU/1/da"><img src="http://feedads.g.doubleclick.net/~a/PZnvDnK6f6SxCpP-76aIAGUJfTU/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WkpPCM2I7qo:K4XV2lDR0dg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WkpPCM2I7qo:K4XV2lDR0dg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WkpPCM2I7qo:K4XV2lDR0dg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=WkpPCM2I7qo:K4XV2lDR0dg:F7zBnMyn0Lo" border="0"></img></a> </div>

Bernanke's speech on the economic outlook
Bernanke signaled the Fed intention to end interest rates easing. “For now, policy seems well positioned to promote moderate growth and price stability over time. We will, of course, be watching the evolving situation closely and are prepared to act as needed to meet our dual mandate”. Bernanke remains alert, but feels more confident that financial instability is receding. “The resulting reductions in funding pressures, together with the increased confidence created by the assurance that <p><a href="http://feedads.g.doubleclick.net/~a/IdCHIi9Q8jMmWceKtIcHYOpnE_E/0/da"><img src="http://feedads.g.doubleclick.net/~a/IdCHIi9Q8jMmWceKtIcHYOpnE_E/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/IdCHIi9Q8jMmWceKtIcHYOpnE_E/1/da"><img src="http://feedads.g.doubleclick.net/~a/IdCHIi9Q8jMmWceKtIcHYOpnE_E/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=u5ePwUf0Utk:P-P0W_Y1yWc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=u5ePwUf0Utk:P-P0W_Y1yWc:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=u5ePwUf0Utk:P-P0W_Y1yWc:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=u5ePwUf0Utk:P-P0W_Y1yWc:F7zBnMyn0Lo" border="0"></img></a> </div>

Minutes of FOMC Meeting, April 30th 2008
• The minutes showed that expectations for 2008 had deteriorated since the previous meeting. Participants lowered their forecast for GDP growth in 2008 while revising up sharply their outlook for inflation • FOMC members expected a recovery in 2009, but admitted that downside risks to the outlook were significant. Risks to growth were linked to the enduring strains in the credit market, while risks to inflation were mainly associated with changing expectations • As long as their new base <p><a href="http://feedads.g.doubleclick.net/~a/jewiQMYFws7q2iLOxZ_mBFpY42o/0/da"><img src="http://feedads.g.doubleclick.net/~a/jewiQMYFws7q2iLOxZ_mBFpY42o/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/jewiQMYFws7q2iLOxZ_mBFpY42o/1/da"><img src="http://feedads.g.doubleclick.net/~a/jewiQMYFws7q2iLOxZ_mBFpY42o/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WDBL0LiikXc:bM3FvSWAqu4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WDBL0LiikXc:bM3FvSWAqu4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=WDBL0LiikXc:bM3FvSWAqu4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=WDBL0LiikXc:bM3FvSWAqu4:F7zBnMyn0Lo" border="0"></img></a> </div>