FOMC meeting coming up, so what's in store? - Nomura

Analysts at Nomura gave a snapshot preview of the FOMC coming up today.

Key Quotes:

"FOMC meeting: In his first Congressional testimony, Chair Powell stated very directly that he had become more optimistic about the outlook for the US economy.

Those comments, which he gave in response to a question about the outlook for interest rates, are the essential context for the upcoming FOMC meeting.

The Committee seems set to raise its targets for short-term interest rates by 25bp at the meeting.

More important, a number of factors, most notably a substantial increase in federal spending, are likely to push FOMC participants to upgrade their outlook for growth and labor markets. In response, they are also likely to raise their forecasts for the path of interest rates. We think the median of the FOMC forecasts will signal four hikes in 2018, but this remains a close call. Read our full preview: March FOMC Preview, Policy Watch, 18 March 2018."