Federal Open Market Committee meet Wednesday 30 October 2019
- decision announcement due at 1800GMT
(Note, on November 1 a pack of Fed officials will be unleashed:
Kaplan, Clarida, Quarles and Williams all speak on the 1st)
Summary of RBC preview:
- market priced about 90% for a 25 basis point cut, the Fed is very unlikely to disappoint
- More important will be any indication that the committee is done cutting for now
- In the last statement, they noted that "uncertainties about the outlook remain" as rationale for continued easing. While trade tensions and Brexit have yet to be resolved, there has been some shift in a more positive direction for both in recent weeks. Moreover, the panic over the inverted yield curve has also dissipated
- economy broadly on firm footing (the household sector continues to chug along), the argument to ease beyond the October meeting has weakened
