Monday, September 14, 2015

FOMC: The world is waiting for you – Nomura

FXStreet (Delhi) – David Fritz, Research Analyst at Nomura, suggest that the entire global investor’s community will solely be focussing this week on the all-important FOMC decision.

Key Quotes

“The financial markets will gravitate around the FOMC on Thursday. Market consensus, according to Bloomberg’s survey, is slightly tilted toward a hike of 25bp. However, market pricing suggests that the Fed will remain on hold at this meeting.”

“Our house view is that the Fed will choose to wait, with December the most likely candidate for liftoff. The fall in equity markets and rise in credit spreads and market volatility has already pushed financial conditions down, suggesting there is less need to be in a hurry to hike.”

“Recent communications and data have been mixed, suggesting that this decision will not be a done deal until Yellen has had her say on Thursday. Along with the FOMC statement, the Fed will also release the latest Summary of Economic Projections, and Chair Yellen will hold a press conference. The FOMC members’ views on the economy and Yellen’s outlook on the US and global economics and financial markets will be important for future expectations.”
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