Federal Open Market Committee statement will hit at 1900GMT on January 30
- at 1930GMT Fed Chair Powell follows up with press conference
Earlier previews here:
- Federal Reserve FOMC meeting Wednesday - preview
- January FOMC meeting preview, what to expect and forex implications
- MS on potential significant FX implications from the FOMC this week
- Federal Reserve FOMC meeting this week - preview
This now via Rabobank:
- We no longer expect any rate hike this year. The Fed's patience suggests that they are aiming for a summer hike. However, recent movements in the yield curve confirm our view that we are getting closer to a recession. Therefore, we doubt that the economic data will be strong enough to build a case for a restart of the hiking cycle.
- We expect the Fed to put a halt to balance sheet normalization in the second half of the year, once the case for a summer hike has collapsed.
- In 2020 we expect the Fed to start cutting rates, but probably too late to avert a recession during the course of the year
NAB:
- FOMC meeting is unlikely to reveal too much new given the recent round of Fed speakers who now claim they have time to sit back and review news and data.
