What will FOMC signal after lift-off? – Nomura
|By FXStreet FXStreet (Guatemala) – Analysts at Nomura explained that they believe that the FOMC will raise short-term interest rates at its December meeting as comments from Fed officials in recent months have suggested that the bar for liftoff is low.
Key Quotes:
“With liftoff quite likely, the most important issue is what the FOMC might signal about will come after that. We expect Yellen and the FOMC to reinforce the message that the coming interest rate adjustment will be “gradual” and “data dependent.”
In particular, we expect the FOMC to lower its interest rate forecast— signaling a more moderate pace of hiking—and we expect the FOMC to indicate that future rate hikes will depend on its forecast for rising inflation being realized.”
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Source:: FX Street