U.S. Outlook: Preview of next week’s FOMC decision

Posted By Scott Anderson In Economic Outlook | No Comments

Will next week’s FOMC meeting and likely first and only rate hike of 2016 bring the equity markets back down to Earth?

Graph showing ups and downs of the bond market in recent years. [1]First, it may help to recap the FOMC meeting from November for some perspective.

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.

Click here to read my full report. [2]

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URL to article: https://changematters.bankofthewest.com/2016/12/09/u-s-outlook-preview-next-weeks-fomc-decision/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2016/12/graph_bondmkt_120916.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2016/12/BankoftheWest_USOutlook_12_9_16.pdf

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