US week ahead: Midterm elections and FOMC – Danske Bank

According to analysts from Danske Bank, the US mid-term elections will attract a lot of attention but are unlikely to lead to any changes in economic policy. Next week, will also be the FOMC meeting, they see it as a small one and don’t expect any policy or signal changes.

Key Quotes:  

“In the US, Midterm Election Day is on Tuesday. Counting starts as soon as the polls close and we should have the results early morning Wednesday (CEST). We expect a divided US Congress, which means that Trump would be unable to push his domestic policy agenda through. Therefore, in our view, the mid-term elections should have limited implications for markets and the economy, as there will be no changes to economic policy.”

“In terms of data economic data releases, we have a quiet week. On Monday, ISM nonmanufacturing is due for release, which will give us more information about the current growth momentum. In September, the index printed the second-highest value since the series began in 1997.”

“Furthermore, the coming week also brings the November FOMC meeting. It is one of the small meetings without updated projections and a press conference. We do not expect the Fed to increase the target range, and we do not expect any signals in the statement either, as they often do not change it much from meeting to meeting.”