FOMC Preview: Expect hawkish overtones from decision to raise rates - Barclays

In his latest client note, Barclays’ analyst Michael Gapen expressed his take on Federal Reserve Open Market Committee’s (FOMC) decision on the US monetary policy due to be announced on Wednesday at 1800 GMT.

Key Quotes:

“We see hawkish overtones from the decision to raise rates and our expectation that the statement will no longer say that the (federal) funds rate is likely to remain below the long-run neutral rate for some time.”

“As the (Federal Open Market Committee) closes in on neutral, we see it as less likely to make promises on the path of policy,” referring to the level at which monetary policy neither boosts nor slows the economy.