FOMC: November meeting is likely to be uneventful - TDS

According to analysts at TDS, the November FOMC meeting is likely to be uneventful: no changes to policy and no substantive changes in language, with 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.”

“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.”

“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.”