Fed: November minutes likely to increase perception of December hike - BNPP

Research Team at BNP Paribas, suggests that Wednesday should prove to be a packed day, with the release of the November meeting minutes of the US Federal Reserve, data on durable-goods orders and Michigan consumer sentiment.

Key Quotes

“The Fed held rates unchanged in November, but took some baby steps towards the next hike by saying that the case for higher rates “continued to strengthen,” and that it now only needs to see “some” further evidence of continued progress toward its objectives. Barring significant shocks, we expect the Federal Open Market Committee (FOMC) to raise rates by 25bp at its 12-13 December meeting. We expect the minutes to increase the perception that a majority of FOMC members want to hike in December; we believe the probability of a hike to be around 80%.”