Fed expectations and a new Richmond Fed president - UOB

Analysts at UOB Group explained that according to the latest Reuters poll (4 Dec), all 103 economists polled expect the Fed to raise rates by 25 bps to 1.25-1.50% at next week’s 12/13 Dec FOMC meeting.

Key Quotes:

"The Fed is expected to hike rates 3 times in 2018, (versus 2 hikes expected in Nov 2017 poll).

More than 90% of the 66 economists polled said that the coming changes at the Fed will not alter the current expected course of rate hikes.

Directors at the Federal Reserve Bank of Richmond confirmed Monday (4 Dec) they had chosen Thomas Barkin, a senior executive at global consulting firm McKinsey & Co., as the next Richmond Fed president.

The appointment has been approved by the Fed’s Board of Governors in Washington.

Barkin is a senior partner and chief risk officer at McKinsey, is a 30-year veteran at the firm where he served as the chief financial officer from 2009 to 2015.

It would be noted that Barkin has no prior experience in monetary policymaking."