“The set-up going into the meeting is such that market movements on the Fed’s announcement will likely be dwarfed by post-election market trends,” Velis adds.
BNY expects the Federal Open Market Committee (FOMC) to cut the Federal Fund Rate by 25 basis points (bps) this Thursday, a move that is 91% priced in.
John Velis, Americas macro strategist at BNY, does not foresee much in the way of forward guidance and expects Powell’s press conference to reaffirm the Fed’s data dependence with respect to future monetary policy.
