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    FOMC preview: June hike clearly off the table - Wells Fargo Matías Salord

    According to analysts from Wells Fargo, the Federal Reserve will leave rates unchanged and the policy statement and the dot plot will hold important clues about when and how it will raise rates in the future.Key Quotes:“While the weaker jobs report may well prove to be an outlier, a June hike is clearly off the table. Chair Janet Yellen laid out the case for raising rates later this year, noting that labor markets have tightened across the country and wage increases are accelerating.”“We expect the Fed to reiterate its concerns about the global economy at this week's FOMC meeting. While no rate hike is expected, the policy statement and the dot plot will hold important clues about when and how much the Fed will raise interest rates over the next couple of years.”“The financial markets are only pricing in a 53.4 percent chance that the federal funds raise by a quarter percentage point by the end of this year. We believe the dot plot will imply two quarter point moves by the end of this year but will likely have fewer hikes in 2017 and 2018, yielding a lower long-term federal funds rate than the current 3.25 percent.”


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