FOMC to stay the course – Danske Bank

Dhwani Mehta FXStreet

Analysts at Danske Bank note that the FOMC decision is the main event risk for Wednesday, adding they expect the Fed to stand pat on its monetary policy settings.

Read: Federal Reserve Preview: Three reasons why Powell could pause, pummeling the dollar

Key quotes

“Today's main event is the FOMC meeting (announcement 20:00 CEST). It is one of the interim meetings without updated projections (including Fed dots). “

“We do not expect the Fed to send any new policy signals.“

“We expect the Fed to repeat that high inflation is mostly transitory and that the labour market recovery has further to go still. Fed Chair Powell's press conference begins at 20:30 CEST.”

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.

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