The FOMC meeting now takes centre stage, with traders hoping we don't see the same sort of confusion seen after the March press conference

The FOMC meeting now takes centre stage, with traders hoping we don't see the same sort of confusion seen after the March press conference. The damage limitation that ensued after Janet Yellen's initial view expressed during the press conference that interest rates could go up six months after the Fed stopped tapering its bond buying program saw sizeable uncertainty in markets. It's not just investors and traders that are keen to listen in to the view of the Fed, but both developed and emerging market central banks will be extremely interested in what the Fed has to say. Certainly yesterday's US May CPI print adds some extra spice to the meeting, with headline inflation (at 2.1%) recording the largest annualised increase in 19 months. The three-month annualised rate is now 2.8%, which is the most since 2009. (VIEW LINK)