MACROSCOPE: Yield curve concerns resurface as Federal Reserve turns dovish

A week ago – on March 20, to be precise – the U.S. Federal Reserve (the “Fed”) confirmed one of the most remarkable turnarounds in its monetary stance in years. Specifically, the Fed reiterated that it would be patient in making future adjustments to its benchmark interest rate. Concurrently, the median projection of Fed officials for future interest-rate increases this year (visualized through the so-called “dot plot”) dropped to zero, compared with two rate hikes in Fed forecasts as recently as December 1. Click here to read our latest market bulletin.