The talking point seems to be the Federal Open Market Committee removing 'accommodative' from the statement
Plenty of 'we were surprised by that' type responses out there. Gotta say I am surprised anyone is surprised, it was always on the table at this meeting! Plenty of traders thought the same.
Anyway, some snippet responses from about the place;
Fidelity:
- overall tone of the statement was upbeat
- Powell chose to strike a relatively dovish tone at the press conference, presumably making room for more flexibility around the future policy path given the multitude of uncertainties
TD:
- removal or accommodative surprised the market
- dots mostly unchanged
- USD to remain under selling pressure against mainly EUR and AUD
State Street:
- folks were watching for … was remove the word 'accommodative'
- does seem to potentially indicate they (the FOMC) believe monetary policy is becoming less accommodative and getting more towards that neutral rate
Charles Schwab:
- This hike … yet again demonstrates the Fed's faith that it can continue to raise rates gradually without slowing economic growth
- Trade concerns are being counter-balanced by wage inflation
- A December hike seems likely, but the likelihood could ebb and flow depending on incoming economic data between now and then.
