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In the latest client note, analysts at Morgan Stanley offer their outlook on the Federal Open Market Committee (FOMC) monetary policy for the next 12 months.

Key Quotes:

‘Tightening of financial conditions since the September FOMC equates to about 40bp in fed funds equivalent terms’.

This could chop off around 0.2% from FOMC 12 month growth forecast (median).

Expects dots to be lower.

Expect Fed hikes in December 2018 then March and June 2019.