Following today’s FOMC, analysts at Rabobank explained that Monetary policy remains unchanged.
Key Quotes:
“The FOMC statement acknowledged the decline in unemployment and the slowdown in business investment.”
“The midterm election outcome is not likely to have changed the Fed’s outlook, nor has it changed our Fed view.”
“Our baseline scenario is a federal funds rate hike in December, another hike in March 2019, followed by an inversion of the curve in Q2.”
“The latter would lead to a pause in the Fed’s hiking cycle.”
“We would not be surprised to see the minutes, to be published on November 29, contain a signal for another technical adjustment to the IOER rate in December.”
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