FOMC Preview: Promoting patience - TDS

In view of analysts at TD Securities, the FOMC is likely to stress patience and data dependence in part by removing the last vestiges of forward guidance in its statement, while the risks should remain "roughly balanced."

Key Quotes

“Market anticipation for a substantive announcement on ending balance sheet runoff is likely misplaced, but we could see Powell hint at the possibility of a larger balance sheet than in past comments.”

“FX: Cognizant of a "buy-the-rumor, sell-the-fact" dynamic, we expect the USD to return to the range lows ahead of the meeting, while high-beta FX sustains its bid. The loss of Fed leadership should anchor USDJPY lower however.”