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Fed needs to Keep June in play
The overall message from the Fed will be that policy moves remain data dependent and rates could be raised at any time if conditions warrant such a move. There will certainly be some dovish elements, especially after a run of generally disappointing data, and any doubts over labour-market trends would be an important shift. The FOMC will, however, expect the economy to recover and should be slightly more confident that inflation will move back towards the 2% level. Crucially, from a Fed and market perspective there would be clear dangers in ruling out a June move to raise rates. There would be the risk that they ... (full story)