In view of the December FOMC monetary policy meeting, the Rabobank analysts expect the US central bank to raise interest rates by 50 basis points and revise the terminal rate projection to around 5%.
Dot plot can show disagreement about terminal rate
“We expect Powell to continue to push against rate cuts in 2023repeating that restoring price stability will require keeping policy tight for some time and that history strongly cautions against premature easing of policy.”
“Meanwhile, obscured by Powell’s aggressive consensus view, the dot plot is likely to show considerable disagreement on the terminal rate. This could become more prominent in 2023 as the subset of voters becomes more dovish.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
