‘FOMC almost certain to deliver the third rate hike of 2017’ – Goldman Sachs
|Goldman Sachs’ Analysts came out with a brief preview on their expectations on the final FOMC meeting of this year, with a rate hike widely priced-in by the markets.
Key Quotes:
“FOMC almost certain to deliver the third rate hike of 2017.
Attention is likely to focus on the outlook for 2018 and beyond.
In particular on how the Federal Reserve will react to a tax reform that now appears likely to become law.
The economic data have improved slightly on net since the FOMC last met in early November.
Growth momentum has remained strong.
Unemployment rate has fallen further.
The latest inflation data were encouraging.
Financial conditions have eased once again, as they have in the aftermath of each Fed tightening action so far in this hiking cycle.
In light of both the stronger growth momentum and the prospect of tax cuts.
We expect the Summary of Economic Projections to upgrade GDP growth in 2018 and 2019.
And to mark down the unemployment path by two-tenths to 3.9%, offset only partly by a one-tenth reduction in the longer-run unemployment rate to 3.5%.
We expect the 2018 inflation projections to remain at 1.9%.
We continue to expect four rate hikes next year.“
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.