FOMC: On hold with focus on the post-meeting statement - TDS

Research Team at TDS, suggests that for the FOMC rate decision on Wednesday there is little doubt that the Fed will be on hold, but the focus will be very much on the post-meeting statement.

Key Quotes

“A sharp rebound in financial conditions following the UK Referendum and firming US data (including strong nonfarm payrolls) will help the Fed sound marginally more confident in the outlook. However, with the wider fallout from Brexit a key source of medium-term uncertainty and very low inflation expectations, a still-cautious tone will be reflected in the statement. A risk management approach to monetary policy will likely delay the next hike until June 2017 and the hurdle to hike earlier remains high.”