La Française - PRE FED Commentary
FOMC expected to provide dovish message
We expect the Federal Open Market Committee to repeat the Fed’s existing dovish message despite recent taper discussions. In our view, Mr. Powell will be very cautious as to how and when to manage the tapering topic after what happened in 2013.
Given the recent progress (resilient growth, rising vaccine distribution and fiscal stimulus) on one hand and the worsening public health situation on the other, the communication should be balanced and prudent. The FED will remain focused on reaching its long-term growth and inflation goals. Janet Yellen’s appointment as US Treasury Secretary will probably help future discussions between the Federal Reserve and the government.
Lastly, the upcoming FOMC meeting should be a non-event with no new economic forecast and no update on the “dots plot”. We anticipate no changes to the statement and the FED to continue asset purchases at the current pace, at least $80bn of Treasuries and $40bn of MBS per month.
Disclaimer
This commentary is intended for non-professional investors within the meaning of MiFID II. It is provided for informational and educational purposes only and is not intended to serve as a forecast, research product or investment advice and should not be construed as such. It may not constitute investment advice or an offer, invitation or recommendation to invest in particular investments or to adopt any investment strategy. Past performance is not indicative of future performance. The opinions expressed by La Française Group are based on current market conditions and are subject to change without notice. These opinions may differ from those of other investment professionals. Published by La Française AM Finance Services, head office located at 128 boulevard Raspail, 75006 Paris, France, a company regulated by the Autorité de Contrôle Prudentiel as an investment services provider, no. 18673 X, a subsidiary of La Française. La Française Asset Management was approved by the AMF under no. GP97076 on 1 July 1997.
Expert
François RIMEU
Senior Strategist, Crédit Mutuel Asset Management
François Rimeu is Crédit Mutuel Asset Management's senior strategist, responsible for the asset manager’s global macroeconomic & financial analyses and outlooks. François defines th
About La Française Group
La Française, the asset management division of the first benefit corporation bank, Crédit Mutuel Alliance Fédérale, offers conviction-based investment strategies across all asset classes, combining performance targets and sustainability objectives. As a multi-specialist asset manager, its teams focus on their core expertise while integrating advanced ESG principles into their analyses and investment processes. La Française operates across listed and unlisted markets, including real estate. With over €160 billion in assets under management*, 1,000 professionals and a presence in 10 countries, La Française designs innovative investment solutions tailored to clients’ objectives and investment horizons.
* 30/06/2025