Lee Sue Ann, Economist at UOB Group, expects the Federal Reserve to keep its monetary conditions unchanged at its event later on Wednesday.

Key Quotes

24-hour view: “The December 2021 FOMC indicated a shift forward to the Fed’s policy normalization timeline.”

“The Fed will accelerate QE tapering which we now expect to be completed in March 2022.”

“Thereafter, we expect three rate hikes in 2022 (in line with the Dotplot guidance), the first one likely in June. This is followed by rate hikes in September and December. There is a risk the Fed may hike any time after QE taper ends in March.”