U.S. Outlook: Preview of next week’s FOMC decision
Will next week’s FOMC meeting and likely first and only rate hike of 2016 bring the equity markets back down to Earth?
For more, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Dec. 9.Key observations:
- My guess is that most FOMC participants will remain cautious in their outlooks and not significantly revise their growth and inflation forecasts.
- Recent economic releases point to another upward revision in third quarter U.S. GDP to around 3.4%.
- There has been little adverse fallout from Brexit, the Italian referendum, or the U.S. presidential election.
- It sure looks like the FOMC will be able to check the box on moderate economic growth continuing.