FOMC Preview: January meeting to be a simple affair - Westpac

Westpac Analysts published their preview on what to expect from the FOMC monetary policy decision due to be announced at 1900 GMT.

Key Quotes:

“Following the BoJ and ECB's meetings last week, this week sees the first meeting of the FOMC for 2018. It will also be Chair Yellen's last. 

The January meeting is a simple affair, the decision statement the only method of communication. Since December, a weaker US dollar; little change in term interest rates; and the passing of tax reform all warrant greater short and medium-term optimism over the outlook.

Due to the above factors, we have revised our expectations for the FOMC.

We look for 25bp hikes at the March; June and September meetings. At that point, the fed funds rate will be above neutral and the balance sheet unwind in full effect. This will be an appropriate time to pause and assess.”