Fed preview: Supporting the expansion – ANZ

Tom Kenny, analyst at ANZ, suggests that the Federal Open Market Committee (FOMC) is expected to cut rates by 25bps this week.

Key Quotes

“We also expect it to maintain an easing bias and for many FOMC members to project three rate cuts for 2019.”

“The dot plot should drop, but the distribution around the median is likely to widen as the Committee is divided on the need for easing.”

“Fed Chair Powell may face a challenge articulating the policy outlook given the division of views, however we expect him to emphasise the Fed will do what it can to sustain the expansion.”