Market 'too complacent' into FOMC on prospect of higher Rates - ING

ING on the Fed

ING Research argues that this week's FOMC meeting may not be the non-event that many in the market are seemingly viewing it.

"While the long-awaited announcement of the Fed's balance sheet unwind will be the main event, there will be keen interest in the new official forecasts. These may be used to reinforce the message that, while there is little need for aggressive interest rate hikes, the market remains too complacent on the prospect of higher interest rates.

We therefore suspect the Fed will keep its positive, longer-term forecasts unchanged and we currently look for a December rate rise followed by two more 25bp hikes next year," ING projects.

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