Fed to drop the word 'patient'; like India: Hans Goetti

All eyes are on the Fed's statement from the FOMC meet and investors hope that the central bank will give a clearer signal on the timing of its first interest rate hike in almost a decade. Many investors expect a change in the Fed's language, and most economists expect Fed Chair to erase the word 'patient' as a precursor to starting rate hikes in June. Hans Goetti of Banque Internationale is also of the view that Fed will drop the word 'patient' but the rate hikes will start only by June because the economic data in US is not yet encouraging.From the emerging market basket, India according to him stacks well and recent pullback is normal for any market, especially after a good run up. Only if the Nifty drops below 8500 then it would be a worry, says Goetti.Goetti feels India is a growth story within itself unlike other markets.

Below is the transcript of Hans Goetti's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.Ekta: What is your expectation from the FOMC, patient or not patient?A: They will probably drop the word patient because the markets are already positioned for that. I think the markets are being conditioned for that and if for any reason they keep it in, they might even send the wrong message by saying that something might be wrong so I would think they will drop the word.

transcript to follow