Connecting the FOMC dots – Nomura

The FOMC’s actions overnight have provided some relief, as the market was concerned the FOMC would raise the median dots higher across the board and also deliver a hawkish message (at Powell’s press conference), suggests the analysis team at Nomura.

Key Quotes

“Instead, the FOMC hiked by 25bp (in line with consensus), marginally revised up the median dots in 2019 and beyond (some were concerned the 2018 dots would move higher), while Fed Chair Powell still emphasised a gradual policy normalisation and that there was ‘no sense’ that the US is ‘on the cusp of an acceleration of inflation.’”