The Goldman Sachs analysts are out with a sneak peek at what to expect from Wednesday FOMC monetary policy decision due to be announced at 1900 GMT.
Key Quotes:
“Base case is for the dot plot update to show monetary policy on hold in 2020. But then with a leg each side of the fence.:
There could be either a dovish or hawkish surprise
Hawkish if more FOMC participants project one rate hike in 2020 or two hikes in 2022.
Dovish if the median long-run dot declines from September’s 2.5% level or participants see higher inflation as a prerequisite for the next rate hike
Beyond the December meeting, we see a high bar for policy moves in either direction.”
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