Federal Reserve Federal Open Market Committee meeting this week - brief previews

Author: Eamonn Sheridan | Category: Central Banks

The FOMC meeting statement is due Wednesday 16 September 2020 at 1800 GMT.  

  • Includes the Summary of Economic Projections
  • Dot plot
Federal Reserve Chair Powell press conference follows at 1830 GMT.  

I posted earlier some quick thoughts from BoA / ML:
Market expectations centre on no change in policy from the Bank this weel. 

A couple of snippets from:

Goldman Sachs:
  • GS says that a move from the Fed to skew UST purchases toward longer maturities would 
JPMorgan
  • Also with low expectations for change, inflation-outcome-based guidance not expected to be introduced this week
  • Does not expect the Fed to extend the maturity of its Treasury purchases
ING:
  • may seek to operationalise its new average inflation targeting approach with some additional forward guidance ... but with fragile equity markets and risk sentiment, it is unlikely to happen this week
  • suggests a lack of downside to the dollar and range bound DXY this week
Scotia:
  • No major policy changes are anticipated
  • expect the median dot to show no rate change in 2023 but the dispersion of views may widen
  • The statement may codify reference to targeting average 2% inflation over time
  • The description of current conditions provided by the statement will probably be very similar. The press conference may reveal further discussion of the strategy review but matters such as strengthened forward guidance are not expected to be offered until late year. 
The FOMC meeting statement is due Wednesday 16 September 2020 at 1800 GMT.  

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