Nov FOMC: On hold; Too early to say a December hike is a done deal – Danske

FOMC preview from Danske Bank
The FOMC meeting concludes on Wednesday. We expect it to maintain the target range at 0.25-0.50%, in line with consensus, due to the presidential election next week.
It is one of the small meetings without a press conference or updated ‘dots’, therefore, the most interesting part is the FOMC statement. The Fed more and less pre-announced the December 2015 hike at the October meeting but, , this time, unlike last year, the markets have now more or less priced in a Fed hike by year-end as much as possible given that there are still one and a half months before the December meeting. Hence, we do not expect any major changes to the FOMC statement at this meeting, as it was already quite hawkish last time, as it stated that the case for a rate hike had ‘strengthened’. It may say that economic data have supported its view that growth has picked up pace.