FOMC meeting was very straightforward - RBC

Josh Nye, Senior Economist at RBC explained that, as expected, today’s FOMC meeting was very straightforward—no rate hike and only minor tweaks to the policy statement. 

Key Quotes:

"The Fed took note of lower unemployment over the last two months and slightly softer business investment in the Q3 GDP figures."

"But otherwise their assessment was familiar—strong economic activity and household spending, and inflation near 2%. Risks to the outlook remain “balanced,” and further, gradual rate increases are expected."

"That guidance has become synonymous with hikes at every other meeting, a pattern we expect will continue with a move in December and four more rate increases next year. Markets are pricing in less tightening through the end of next year, even relative to the Fed’s ‘dot plot’ median of three hikes in 2019. We see little reason for policymakers to slow the tightening cycle, even as fed funds gets closer to most estimates of the ‘neutral’ rate."

"With unemployment at its lowest in nearly 50 years and the economy still carrying decent momentum (growth over the last two quarters was the best in four years) we think inflation risks are tilted to the upside."

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.