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Economist at UOB Group Lee Sue Ann assesses the upcoming FOMC meeting (Wednesday).

Key Quotes

“We no longer expect yield curve control to be a Fed policy tool. Following the announcement for the adoption of Average Inflation Targeting (AIT) and putting emphasis on “broad and inclusive” employment, the Fed is now seen as willing to allow inflation to run hotter than normal (i.e. 2%) in order to support the labor market and broader economy, a landmark shift to prolonged low rates era”.

“The focus of the September FOMC will be the updated Economic Projections”.