In view of analysts at Danske Bank, all eyes will be on the FOMC meeting tonight and suggests that it hasn’t become less exciting after the recent market rout and US President Donald Trump’s frequent expressions of clear dissatisfaction with the rate hikes.
Key Quotes
“Despite the recent decline in US stocks a rate hike is widely expected. Focus will instead be on the Fed’s projections (the dot plot) for 2019 and the language in the statement. The market is currently priced for less than one hike next year, and even if the Fed softens the rate path and the language, we believe they will be perceived as hawkish compared to market pricing.”
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