Analysts at Nomura offered a preview of the FOMC meeting ahead.
Key Quotes:
"We expect no change in the policy rate at the upcoming 30-31 January FOMC meeting and no material changes or surprises in the post-meeting statement. Incoming data during the intermeeting period have been largely positive, affirming continued growth above potential.
December’s employment report indicated that the economy added more than enough jobs to absorb new labor market entrants and the unemployment rate remained at 4.1%.
Inflation on a 12-month basis continued to run below the FOMC’s target of 2% while December’s core CPI reading indicated some firming of trend inflation towards the Committee’s objective.
Therefore, we do not think the Committee will make any major changes to the first paragraph on the current assessment of recent economic developments. That said, as the impact from inclement weather last summer wanes, the Committee may drop the language on hurricanes. There is no press conference scheduled after the January meeting, thus the Committee will likely refrain from making material changes to policy-related paragraphs in the statement besides minor tweaks.
As the first meeting of 2018, the composition of voters in the FOMC will change, with Chicago Fed President Evans, Philadelphia Fed President Harker, Dallas Fed President Kaplan and Minneapolis Fed President Kashkari replaced by Cleveland Fed President Mester, Richmond Interim Fed President Mullinix (soon to be replaced by Thomas Barkin), Atlanta Fed President Bostic and San Francisco Fed President Williams. Finally, this will likely be Janet Yellen’s last meeting as Chair before her term ends 3 February 2018."
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds losses near 0.6450 amid Australian politics; RBA eyed
AUD/USD keeps the red near 0.6450 in the Asian session on Tuesday as traders opt to wait for the RBA decision before placing fresh directional bets. A modest US Dollar uptick and Australian political drama undermine the Aussie even as the PBOC delivered the expected 10 bps Loan Prime Rate cuts.
USD/JPY drops back below 145.00 on likely Japan-US FX talks
USD/JPY has come under intense selling pressure and gives up 145.00 in the Asian session on Tuesday. The pair fades the upswing after Japan's Finance Minister Kato hinted at holding FX talks with US Treasury Secretary Bessent, which lifted the Japanese Yen.
Gold price struggle with $3,250 extends, what’s next?
Gold price has returned to red early Tuesday, having failed to take out the $3,250 barrier once again. The downtick in Gold price could be linked to a tepid US Dollar recovery as traders await US trade talks and Fedspeak for a fresh directional impetus.
Solana set for a consensus switch with the introduction of Alpenglow
Solana (SOL) showed signs of recovery in the American trading session on Monday following the introduction of a new consensus protocol, Alpenglow, which would replace the network's current Proof-of-History and TowerBFT mechanisms.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.