FOMC Preview: Fed is very unlikely to raise rate this week – Goldman Sachs
Economists at Nomura published with their expectations on the Fed interest rates policy, with almost a no Fed rate hike priced-in this week.
Key Quotes:
“We expect the statement following (the) FOMC meeting to remain relatively upbeat about US growth prospects”
“However, the committee is very unlikely to raise the funds rate”
“To keep markets on notice for a possible rate hike in December, we expect the statement to indicate that the committee is considering action "at its next meeting" ... although this is a close call”
“The statement will likely again say that risks to the economic outlook are "roughly balanced"
“A statement along these lines should keep the committee on track to raise the funds rate at the December meeting”
“The remaining uncertainty relates to incoming economic data and financial conditions ... Conditional on decent data and stable markets, a December rate hike looks very likely”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
