Fed expected to hike in December – BTMU

According to Currency Analyst Lee Hardman at BTMU, the Federal Reserve would likely tighten its monetary policy at its meeting next month.

Key Quotes

“The latest FOMC meeting from last night had limited impact on the US dollar”.

“The Fed signalled that it remains on course to resume rate hikes in December by acknowledging that the case for a rate hike has “continued to strengthen”, but they decided, for the time being, to wait for “some” further evidence of continued progress toward its objectives”.

“The Fed also upgraded its inflation outlook which it no longer expects to “remain low in the near-term”, and acknowledged that market-based measures of inflation compensation have “moved up”.

“Absent a shock victory for Donald Trump in the election and/or two consecutive weak payrolls reports for October and November, the Fed is likely to raise rates in December”.