FOMC should emphasize continuity, with no significant changes - TDS

Analysts at TDS offer a sneak peek on what to expect from the FOMC policy announcement scheduled on Wednesday.

Key Quotes:

“The January FOMC statement should emphasize continuity, with no significant changes.

That would support a market already 95% priced for a March hike.

A risk to our base case would be the 2018 voters shifting the balance of risks in a more positive, hawkish direction.

That could force the market to raise expectations for the number of hikes this year (currently around 2.5).”