Fed to stay on hold this week – UOB

Economist at UOB Group Lee Sue Ann sees the Federal Reserve to keep its monetary conditions unchanged at its meeting on Wednesday.

Key Quotes

“The Fed is willing to look past transient inflation impact and not react pre-emptively (AIT) and will supply clear communication well in advance of any bond-buying taper.”

“We expect no policy changes in this meeting and the Fed’s taper discussion will likely only start in late 2021/early 2022.”

“Policy rate will stay at 0-0.25% till 2023.”