Analysts at TD Securities note that markets are well priced for a September rate hike, leaving a combination of updated projections, the policy statement and Powell’s press conference to drive the market reaction.
Key Quotes
“TD looks for the Fed to keep “accommodative” in the statement but look for the long-run dot to edge lower to 2.75% which may see a dovish reaction in light of relatively hawkish market expectations. On the data front, new home sales are expected by the market to rise 0.5% m/m to a 630k pace in August.”
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