Analysts at Westpac offer a sneak peek at what to expect from the upcoming FOMC monetary policy decision that will be announced on November 8th at 1800 GMT.
Key Quotes:
“The FOMC has persistently focused on the US’ own real economy in 2018. As a result, their belief in a continued ‘gradual normalization’ of monetary policy has remained resolute.
Come the November meeting, there is no reason to expect a material change in view, though rates will not be raised. Employment growth has remained strong, so too GDP.
The nascent evidence of interest rate sensitive sectors coming under pressure is unlikely to concern the Committee at this stage with policy still seen as accommodative. This is also true of recent market declines as equities remain at elevated levels.
For the FOMC “¦ mid-terms have little to no immediate significance. Fiscal policy will become an issue from mid-to-late 2019, as support for growth fades.”
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