FOMC Minutes to take centre stage today – BMO CM
The Fed’s November 1 policy statement had no change in policy rates or guidance and described the economy in a more upbeat tone (keeping the option of a December rate hike open) and so the minutes will be watched keenly for insights, suggests Michael Gregory, Deputy Chief Economist at BMO Capital Markets.
“We’ll be reading the Minutes with three things in mind. First, is the uptrend in the shorter-term inflation metrics ameliorating prior concerns about low inflation reflecting more than just temporary factors? Second, has the Fed’s conviction to continue policy normalization been bolstered by an even tighter labour market and the output gap closing? Third, with tax-cut bills making their way through Congress, is the risk of fiscal stimulus, this late in the cycle, beginning to cause concerns?”