FOMC: Statement to convey a mildly hawkish message - TDS

Analysts at TDS suggests that expectations of a 25bp hike in the fed funds rate is nearly universal and fully priced in ahead of  FOMC rate decision at 14:00 ET and TD expects the statement to convey a mildly hawkish message.

Key Quotes

“The SEP & press conference should be more telling—we expect the dots to drift higher but do not see any change in the 2017 or long run median dots and see only modest tweaks to the economic forecasts. In the press conference, Yellen should continue to emphasize a gradual pace of rate hikes (3-4 hikes per year). We also look for any commentary regarding to fiscal stimulus assumptions.”