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The Fed has many reasons to raise rates in December and to hint about it now. Here is the preview from the team at Nomura:

Here is their view, courtesy of eFXnews:

Nomura Research  expects no significant changes or surprises in the FOMC statement on 1 November.

“Despite the recent and continued weakness in inflation, it is unlikely that the FOMC will announce a material change in its inflation outlook. Instead, we think the Committee would prefer to wait for an addition inflation print ahead of the December meeting before changing its inflation assessment.

That said, the FOMC might tweak the language on the impact from the recent hurricanes on inflation given the muted impact on non-energy prices in the September CPI report.

On monetary policy, the FOMC will likely state that the Federal Reserve will continue the balance sheet normalization program, as outlined in Addendum to the Policy Normalization Principles and Plans, published in June 2017,” Nomura argues.

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