FOMC: watching for forward guidance - UOB

Analysts at UOB Group explained that the Federal Reserve policy meeting will be the main focus this week. 

Key Quotes:

"The latest statement will be released at the same time (2am SGT on 16 March, Thursday) and the FOMC will also issue its latest economic forecasts along with individual interest rate projections from committee members. Fed Chair Yellen will hold a press conference after the statement is released."

"Following the rhetoric from key Fed officials there is little doubt that rates will be increased at the meeting. Markets have moved to price in a further 0.25% rate increase and reaction to the rate increase itself should be relatively limited."

"The more important aspect of the meeting will, therefore, be forward guidance on the policy outlook. In particular, markets will be looking at the interest-rate projections from FOMC members to assess whether there is any shift in the forecasts made in December."