Will the Federal Reserve hike rates in December as seems widely expected now?
If they do ... This is a quiet session so far, so I'm taking the opportunity to brainstorm a few headlines for December, I'm liking the Grinch so far
But, just in case you've clicked on this post, I s'pose I better add something worthwhile.
Here is BoA / Merrill Lynch on what the Fed is signalling for December (bolding is mine)
The FOMC clearly signaled a hike before the end of the year in both the language and the dots
The Fed made two important changes to the statement:
1. the committee noted that near-term risks to the economic outlook "appear roughly balanced". This is an important step for the Fed to justify hiking rates at an upcoming meeting and is a page out of the playbook from last year
And, 2. "the Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of further progress toward its objectives." This is a strong signal that the Fed is planning to hike in an upcoming meeting. It is not explicit calendar guidance, but it is a small step in that direction.