There are 4 components to today FOMC's announcement that will be pertinent to the market’s views on US rates and the USD, says Barclays. First, is the decision on tapering. Barclays' view: Our US economists expect the Fed to taper its asset purchases to $70bn ($35bn of UST and $35bn of MBS) from $85bn, while leaving forward guidance unchanged. A larger taper will lead to a sharper selloff in long-term rates and weigh on EM/high-carry currencies versus the USD and vice-versa. Second is the decision on the UER threshold associated with the first fed funds (FF) rate hike. Barclays' view: No change on the forward ... (full story)