A quick preview via ANZ for the Federal Open Market Committee monetary policy decision coming up on Sep 18

  • Federal Open Market Committee (FOMC) is expected to cut rates by 25bps this week.
  • We also expect it to maintain an easing bias and for many FOMC members to project three rate cuts for 2019.
  • The dot plot should drop, but the distribution around the median is likely to widen as the Committee is divided on the need for easing.
  • Fed Chair Powell may face a challenge articulating the policy outlook given the division of views, however we expect him to emphasise the Fed will do what it can to sustain the expansion.
A quick preview via ANZ for the Federal Open Market Committee monetary policy decision coming up on Sep 18