The Swing in Broad Market Conditions…

Economic Research	2 June 2016
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Economic Highlights
The Swing in Broad Market Conditions… The relevant developments over the past two weeks should be a sufficient reminder that the responsibility of conducting US monetary policy ultimately lies with the Fed (or more specifically, the FOMC) not with financial markets. It is also important to be mindful that in the current environment, the Fed’s appetite to “surprise” markets should be limited. Therefore, in view of the latest information or so-called “data-dependent” approach, Fed officials have been attempting to recalibrate expectations. But if the list of conditions in the rate hike equation is too broad or overly vague, then the overall message from policymakers tends to be more muddled. Economist:  Thomas Lam  | +65 6533 0389
To access our recent reports please click on the links below: 26 May: Tentative but Broadly In line… 19 May: Rate Hike Debate Intensifies? 09 May: Early Peek into 2q16? 05 May: One Step Forward, Two Steps Back… 28 Apr: Best Guesses & Speculations 18 Apr: Rolling the Dice on the USD/JPY… 12 Apr: Is the Economy Only Slightly Above Water in 1Q 2016? 22 Mar: Is Fed “Guidance” a Potential Source of Volatility?