FOMC: Dot plot update to show monetary policy on hold in 2020 – Goldman Sachs

The Goldman Sachs analysts are out with a sneak peek at what to expect from Wednesday FOMC monetary policy decision due to be announced at 1900 GMT.

Key Quotes:

“Base case is for the dot plot update to show monetary policy on hold in 2020. But then with a leg each side of the fence.:

There could be either a dovish or hawkish surprise

Hawkish if more FOMC participants project one rate hike in 2020 or two hikes in 2022.

Dovish if the median long-run dot declines from September's 2.5% level or participants see higher inflation as a prerequisite for the next rate hike

Beyond the December meeting, we see a high bar for policy moves in either direction.”