Comment on yesterday’s FOMC release
Ron Temple, co-head of multi-asset and head of US equity at Lazard Asset Management
The FOMC release yesterday tells us three things:
- You can drive a truck through the economic forecasts, as even the Fed has little visibility in terms of how the COVID-19 crisis will unfold.
- Regardless of the outlook, almost every member expects rates to remain at 0-25bps through the end of 2022.
- At least one of the members is extremely optimistic with an unemployment forecast of 7% at the end of 2020 and 4.5% at the end of 2021. All told, the message is on target in that policy will remain accommodative for the foreseeable future.
.jpg)