Reply #12: What Goldman Expects From Tomorrow's "Watershed" FOMC Press Conference [View All]

[Pale Blue Dot]

From Goldman's Andrew Tilton:

Summary of tomorrow's events:

* Wednesday afternoon will mark a watershed in Federal Reserve communications strategy. Chairman Bernanke will give his first post-meeting press conference and the Federal Open Market Committee’s “central tendency” economic forecasts will be released at the same time (rather than three weeks later with the minutes, as has been the practice recently).

* We expect 1) modest revisions to the FOMC’s forecasts to reflect recent news of softer Q1 growth and higher inflation, 2) reiteration of the intent to end QE2 in June, but an indication that reinvestment of maturing securities is likely to continue beyond that time, 3) a relatively dovish tone from Chairman Bernanke in the press conference, given the still-high level of unemployment and the many uncertainties in the growth outlook

http://www.zerohedge.com/article/what-expect-tomorrows-watershed-fomc-press-conference