As expected, the Fed decided to maintain the target range at 1.00%-1.25% at this meeting.
Also as expected, there were no major changes to the statement. As expected, the Fed still says that it is monitoring inflation closely.
It remains our base case that Fed hikes again in December (in line with market pricing and consensus).
The meeting is overshadowed by the fact that President Trump is likely to announce the next Fed chair tomorrow "afternoon" (US time, so likely tomorrow night CET). It remains our base case that current Fed governor Powell is going to succeed Yellen.
Note that the Republicans are now expected to unveil the long-waited tax plan tomorrow (likely around 14:00 CET).
To read the entire report Please click on the pdf File Below: