FOMC member Bill Dudley told his review about the policy and CNY impact speaking to the Rochester Business Alliance, and BNP Paribas made some expectations and review based on his speechfor example:
- "We suspect he will stop well short of signalling support for September lift-off, which should still leave the USD vulnerable vs. core low-yielding currencies."
- "We reiterate our call for December lift-off, but USD strength is likely to be muted in the near term."
- "The Fed funds futures contract is down about 3bp in the very front-end, and the implied yield on the October contract has retraced last week’s gains. We would highlight that today’s additional CNY depreciation may further reduce US yields."
Fed expectations pushed back to March 2016 as a result of additional CNY devaluation.
