The Fed will continue to trim its asset purchases at the upcoming FOMC meeting, which concludes on the 17th September. There is the possibility that it could also tweak its forward guidance and/or provide more details on its exit strategy. We wouldn't be surprised if the Fed opted to drop its pledge that there will be a "considerable time" between the end of the asset purchases and the first rate hike. We still expect that first rate hike to come in March next year.
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