FOMC not expected to change monetary policy at the January meeting - Rabobank

According to Philip Marey, Senior US Strategist at Rabobank, the FOMC is not expected to change monetary policy at the January 30-31 meeting, but the recent rise in inflation expectations is likely to have bolstered the Fed’s confidence in the inflation outlook.

Key Quotes

“They are increasingly likely to hike in March.”

“However, without a material uptick in core inflation we expect inflation to fall back again in the second half of the year, leading to a delay of the third hike to 2019.”