Federal Reserve Federal Open Market Committee meeting this week - quick preview

Author: Eamonn Sheridan | Category: Central Banks

The FOMC meeting statement is on Wednesday 16 September 2020, 1800 GMT. Federal Reserve Chair Powell press conference begins at 1830 GMT.   

Consensus expectations are for no change to policy, but just scanning some notes from analysts, each have a bit of a nuance and I'll post them up as time allows.

Bank of America / ML
  • expect US rates to tick a little higher toward year end citing an improved story (narrative) more  from "meaningful progress on a coronavirus vaccine”, modest fiscal support 
  • says a key uncertainty is Fed asset purchases, look to meeting for any indication of increased buying intentions &/or or switch to longer duration buying
  • But the Fed probably won’t target rate levels
  • if mkt rates riser the Fed  would likely buy more USTs so as not to see a tightening of financial conditions

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