The Australia and New Zealand Banking Group (ANZ) recently came out with its preview of the US Federal Reserve’s (Fed) monetary policy meeting, up for publishing on October 30, Wednesday. The ANZ’s Tom Kenny and Kanika Bhatnagar cite the risk of more easing while terming the rate cut as a done deal.
Key quotes
“A rate cut from the Fed looks a done deal this week as it takes out more insurance against elevated external risks.”
“Forward policy guidance may point to the FOMC taking some time out to observe the impact of recent cuts.”
“The risk is for more easing, at some point, given low inflation expectations, modestly above-trend growth and elevated downside risks.”
“We expect the FOMC to cut its target rates by 25bp at the October meeting, which would be its the third successive rate cut. This would take policy slightly more accommodative. We think the move is justified in light of the data pulse since the 17-18 September meeting.”
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