Topic: FOMC Minutes Eyed as Sterling Gets Relief Rally
Of those two meetings, November appears all but off the table coming a week before the US Presidential election and not being accompanied by a press conference, giving Janet Yellen an opportunity to explain the decision and what it means for monetary policy going forward. December on the other hand is now heavily priced in by the markets – currently 69% based on Fed Funds futures – with investors coming around to the idea that the Fed is determined to raise rates this year.
Obviously, that could all change and investors have previously jumped at the opportunity to abandon the rate hike ship but I doubt that will happen today. Three of the 10 voting FOMC members dissented at the last meeting, all of whom are permanent voters, which would strongly suggest that a majority is not far away, not with a number of other policy makers appearing to lean that way, including Chair Yellen herself.