FXStreet (Delhi) – Rob Carnell, Chief International Economist at ING, suggests that it is not just the ECB trying to sound dovish as Fed will also closely monitor international economic and financial market developments. Key Quotes “The latest FOMC statement is on the dovish side, acknowledging that the US economy slowed into the end of last year, even as the labour market continued to make further gains. The new statement also includes a phrase in the second paragraph that has echoes of the one used in September 2015, when the Fed held fire amidst anticipation of lift-off, given concerns about China’s slowing economy (amongst other things). The new line reads “The committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook”. So the ping-pong policy continues between central banks. And in its own subtle way, this is a “Right back at you!” to ECB President Mario Draghi’s dovish statement at last week’s ECB press conference. The greater concern about the global environment shown by the Fed should encourage investors to realize that they are not about to go crazy with rate hikes this year. As such, we can see markets taking some comfort from these words, though without a meaningful improvement in the run of macro data, in particular from China, it is hard to see this having a lasting effect.” For more information, read our latest forex news.