A few snippets from ANZ on their outlook for what to expect from the Fed
In summary ANZ is looking for a December rate hike but only one hike in 2019. ANZ add:
- Previous guidance from the Fed has been for three more hikes in 2019, while the market is currently pricing in almost two more hikes. ANZ expects the Fed will raise rates in December then only once more in mid-2019.
On the December hike;
- market pricing has slid from the 80% probability priced in during mid-October to 67% priced in currently
On the dots:
- It appears that the Fed may be preparing the market for a significant shift in the dot plots in December, with the path for rate hikes through 2019 looking more uncertain.
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ANZ are one of the few I have seen not expecting multiple hikes in 2019
