FOMC plans to keep raising interest rates - Westpac

According to analysts at Westpac, the November FOMC policy meeting is unlikely to provide any new revelations.

Key Quotes

“Chair Yellen and the Committee have very clearly highlighted an intention to continue gradually tightening policy, with the next move to come before year-end (i.e. at the December meeting). The market has since responded, almost fully pricing in a December hike. The November meeting will therefore simply confirm an impending move.”

“At this juncture, the focus of markets is instead on who will be the next FOMC Chair. A decision is expected to come from President Trump by the end of next week. If the market rumours are to be believed, then Jerome Powell and John Taylor are in prime position. Both could be seen as more hawkish than Chair Yellen. Hence, on announcement, there may be a shift in market rate expectations for 2018.”