US: Neutral Fed disappoints – RBC CM

Adam Cole, Research Analyst at RBC Capital Markets, suggests that the FOMC statement and press conference was quite neutral, falling short of the “hawkish hold” many had expected.

Key Quotes

“Although the statement acknowledged that the case for a rate hike “had strengthened”, this told the market no more than it already knew, the implied probability of a hike by year-end having risen from around 50% at the time of the previous meeting to around 65% now. Going forward, we return to watching the data and news flow—three more employment reports between now and the December 14 FOMC in particular.”