Fed Policy Outlook: no one expects any rate action at next week's FOMC
Fed Policy Outlook: no one expects any rate action at next week's FOMC. However, it's widely believed the Fed will announce the start of the balance sheet unwind. There shouldn't be much market impact as it's been well flagged for months. Analysts continue to look for another 25 bp tightening at the December 12, 13 policy meeting, however. Both growth and inflation should be picking up into the end of the year and although some policymakers might ascribe some of the strength to the after-effects of the hurricanes and may caution patience, many also have been arguing for a hike in recent months. And if the FOMC is true to its word that the decision will be guided generally by the evolution of the economy, then a tightening is likely. Analysts do not expect the Fed decision will be affected by the potential turnover at the helm with Yellen's chair still up in the air.