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Analysts at National Bank Financial, suggest that today’s Fed rate setting meeting will be held on the heel of a month characterized by both global and domestic stock market weakness, which has contributed to some tightening of U.S. financial conditions.

Key Quotes

“Looking at the real side of the economy we note that the Economic Surprise Index has improved slightly since the September FOMC meeting. However most of the gain may be attributed to survey data rather than hard data, which have largely remained softer than expected.”

“In that context, we do not see why the FOMC would feel any urgency to raise its policy rate on November 8th. This said, in light of our economic projections, we think the Fed remains on track to deliver one more rate hike this year, but in December. That would be consistent with last week comments by the Fed’s new vice chair Richard Clarida, who, in his first public speech, said he thought “some further gradual adjustment in the policy rate range will likely be appropriate.”