FOMC meeting came with no major change to the policy guidance - Nomura

Analysts at Nomura explained that the FOMC meeting came with no major change to the policy guidance language in the November FOMC statement. 

Key Quotes:

"At this point, an additional hike in December is widely expected. The updates to the FOMC’s economic assessment were not significant as incoming data have been mostly in line with the Committee’s expectations (FOMC Statement Comparison, 8 November 2018)."

"The FOMC statement downgraded its assessment of business investment growth to “moderated” from “grown strongly” but this change was likely a mechanical reflection of slower real private nonresidential fixed investment growth in the Q3 GDP report."

"It is likely that the Committee discussed long-term balance sheet topics at this meeting as well as whether to introduce another widening of the gap between the IOR and the upper limit of the fed funds target range in December. Upcoming public remarks may provide us with some guidance on the Committee’s deliberation on these topics."

"Chair Powell’s speech on 14 November could be one possible venue to discuss these developments but the event agenda suggests he may focus on national and global economic issues rather than balance sheet policy. The minutes for the November meeting (scheduled for releases on 29 November) will likely provide us with additional detail regarding these discussions if participants do not cover them before then."