The conclusion of next week's two-day FOMC
meeting on Wednesday will mark the start of a
brave new world, with Chairman Ben Bernanke
scheduled to host the Fed's first post-meeting press
conference. We also expect the FOMC to
complete its $600bn of Treasury purchases as
scheduled by the end of June. After that, we see
the Fed on hold for some considerable time. We
suspect the Fed would be very reluctant to
compound the impact of any fiscal contraction this
year and next by tightening monetary policy too.
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