FOMC committee set to raise its targets for short-term interest rates by 25bp - Nomura
Analysts at Nomura point out that in his first Congressional testimony, Chair Powell stated very directly that he had become more optimistic about the outlook for the US economy.
Key Quotes
“Those comments, which he gave in response to a question about the outlook for interest rates, are the essential context for the upcoming FOMC meeting.”
“The Committee seems set to raise its targets for short-term interest rates by 25bp at the meeting. More important, a number of factors, most notably a substantial increase in federal spending, are likely to push FOMC participants to upgrade their outlook for growth and labor markets. In response, they are also likely to raise their forecasts for the path of interest rates. We think the median of the FOMC forecasts will signal four hikes in 2018, but this remains a close call.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
