The The market expects the FOMC to give some clear guidance that it is willing to ease the pace of monetary tightening. However, the MUFG Bank economists aren’t so sure Chairman Powell is willing to give explicit guidance.
Powell might not meet market expectations
“But will Fed Chairman Powell be willing to provide explicit guidance? We think that will be difficult to do. While the FOMC may be willing to suggest a slowdown in the pace of tightening, there is likely to be limited guidance.” about a pause and the message is probably that the Fed needs to keep going until there is clearer evidence that real core inflation pressures are easing.”
“With the labor market showing limited signs of softening (job openings picked up in September), the Fed may be forced to disappoint those expecting a dovish slope tonight, which should help provide the dollar with renewed support.”
Source: Fx Street
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