The FOMC meet Tuesday and Wednesday this week, September 19 and 20
- The Committee will issue an updated Summary of Economic Projections
- Following the Statement there will be a press conference by the Chair, Janet Yellen
An in brief preview from Barclays on what they are expecting:
The Fed is unlikely to raise rates Wednesday but instead will likely provide further details on balance sheet normalization.
- Its forecasts, however, should remind markets that further tightening is required, supporting short-term US interest rates and the USD.
We do not expect a reduction in the Fed's balance sheet to trouble financial markets, but if UST term premia rise sharply, EM high-yielders are most vulnerable, particularly Brazil and Turkey.
Told ya it was in brief! I'll have more previews as we approach the meeting & announcement.
And, a quick thought on the Bank of England & GBP from Barclays:
Following the hawkish shift in BoE language last week, we expect a 25bp rate hike in November.
- Near-term momentum and short position unwinding should keep GBP supported, but further out, risks still seem skewed to the downside, in our view.
