FOMC minutes breakdown: Dec looks like a done deal - UOB

Analysts at UOB explained that the November FOMC minutes showed that Fed Reserve policymakers generally agreed the case for a rate hike continued to strengthened.

Key Quotes:

"Most said it could well become appropriate to hike “relatively soon”. Some FOMC participants also argued that a hike should take place in the December FOMC to preserve the Fed Reserve’s credibility. Most of the FOMC participants viewed near-term risks to the economic outlook as “roughly balanced” although some were worried that if the Fed Reserve let the unemployment rate fall too low, the Fed may end up needing to hike rates more steeply, and risk ending the US economic expansion."

"In terms of US Fed Reserve outlook, the December FOMC rate hike looks like a done-deal and into 2017, we now expect a faster trajectory (3 hikes in 2017 instead of 2) and a higher terminal rate (3.5% by end-2019 instead of 3%)."