Deutsche Bank economists are expecting few surprises in the statement or Powell’s rhetoric in the forthcoming FOMC meeting tomorrow.
Key Quotes
“They anticipate the median rate expectation for 2019 will fall to one hike, and will be monitoring for any signals about balance sheet policy or what conditions are needed to allow for another hike.”
“Higher Fed rate hike pricing is actually, and somewhat counterintuitively, consistent with easier financial conditions. This is because positive economic data helps equities and credit, while also boosting confidence that the Fed can hike. So we certainly seem to be in a “good news is good news” environment.”
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