FOMC meeting is likely to be uneventful - TDS

In view of analysts at TDS, the November FOMC meeting is likely to be uneventful with no changes to policy and no substantive changes in language and no scheduled press conference or forecast updates.

Key Quotes

“We see two-sided risks: more cautious language on the inflation outlook would be dovish, while some signal about a likely rate hike in December would be hawkish. We views these dovish tweaks as slightly more likely than a hawkish signal.”

“Rates: Given high market pricing for a December hike, we expect any hawkish tone in the statement to have a more modest impact on Treasuries than a dovish bias.”

“FX: A well-priced Fed in the short-term suggests the USD has more to lose than to gain. Absent a dovish inflation characterization, developments abroad and selection of the next Fed Chair should leave the USD supported still.”