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Analysts at Nomura are not expecting many new developments at the conclusion of the forthcoming August FOMC meeting.

Key Quotes

“With respect to the post-meeting statement, it is possible that the Committee will add the phrase “for now” when describing the plans for continued gradual increases in the policy rate, consistent with Chair Powell’s prepared remarks during his semiannual Congressional testimony.”

“We think this change would reflect the Committee’s continued desire to moving away from forward guidance as policy normalization continues. However, we do not expect the phrase “the stance of monetary policy remains accommodative,” which was again highlighted during the June FOMC minutes, to be removed until a meeting with a rate hike, possibly in September.”

“Other changes to the statement are likely to be backward-looking, largely reflecting what has already happened.”