JPMorgan Asset Management strategist Xu Changtai said the Fed is unlikely to
adjust policy rates this year as the committee appears to be exercising
patience. He noted the Fed left rates unchanged and removed an easing bias from
its statement; the initial language was read as hawkish, pushing US Treasury
yields higher and US equities lower overnight. He added that under the Fed’s new
leadership the dual mandate of price stability and full employment and the
framework that relies primarily on the federal funds rate appear to be
consolidated.
