FOMC Preview: Expect few changes in the FOMC’s statement overall - Nomura

Analysts at Nomura offer a brief preview on the FOMC decision due out on Wednesday, anticipating few changes in the policy statement.

Key Quotes:

“We expect the FOMC to stand pat at this week’s meeting and for there to be only small changes to its statement after the meeting. However, we may learn more over the next several weeks.”

“We expect more detailed fiscal proposals from the Trump administration by the end of February.”

“Also, by the March FOMC meeting, we should have a better sense of the degree to which recent improvements in business and consumer sentiment are affecting economic activity.”

“Last, we may know more about FOMC discussions regarding the balance sheet.”

We expect the FOMC to keep the federal funds target unchanged at 0.50-0.75% at the conclusion of the 31 January –1 February meeting.”

“The data on economic activity and inflation since the last meeting have been in line with expectations. We anticipate few changes in the FOMC’s statement overall.”