Didn't the Federal Reserve's Federal Open Market Committee just have a meeting?
Sheesh, there's another one this week, July 25-26.
Here are a few words from MS on what to expect:
- The statement is likely to indicate that policy makers are ready to begin normalizing the central bank's balance sheet relatively soon, solidifying expectations for a September announcement.
- The Fed will also make a benign update on conditions, by saying that the economy continued to expand at a moderate pace and that the labor market is still strengthening;
- the Fed should also say that inflation is running below its 2% goal, while keeping the Fed Funds Rate unchanged.
- Weak inflation data will continue to be a thorn in the Fed's side for several months to come.
- The Fed will resume hiking rates in December after a September pause; it will be a painful wait for investors, and the current 40% probability of next hike in December seems fair to us.
Note, there is no Summary of Economic Projections update, nor is there a press conference by the Chair. So, if you want to see Yellen, this'll have to do:
