What To Look For From The Fed’s October Meeting |
The conclusion of the Federal Open Market Committee’s meeting next Wednesday, seems unlikely to produce a rate hike. There’s currently an eight in 10 chance rates hold steady in October, according to CME FedWatch Tool projections. However, markets firmly expect a hike on Dec. 9. Assuming that those forecasts play out, here’s what to watch for from the FOMC’s announcement on Oct. 28.
A Tightening Bias To Monetary Policy
The FOMC is in tightening mode. Inflation has been above the Fed’s 2% annual target for five years, and recent inflation data shows no real sign of moving to target. Therefore, most policymakers are discussing the timing of future rate increases, not which way monetary policy will go.
Much of current inflation is prompted by spiking energy prices, which are volatile and can fall........