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The Macro Strategists at Deutsche Bank offer a brief preview of the US Federal Reserve (Fed) monetary policy decision due to be announced on Wednesday.

Key Quotes:

“As for the FOMC on Wednesday, our US economists write in their preview that the FOMC should hold rates steady, and that “the current stance is likely to be unchanged barring a “material reassessment to the outlook.”

However, they do foresee a 5bp upward technical adjustment to the interest rate on excess reserves (IOER), though they write that “it is a close call given the communication challenges of such a move.”

All eyes will be on Chair Powell’s press conference following the meeting for any new information. The full-day by day week ahead is at the end.”