FOMC: Risks to remain "roughly balanced" - TDS

In view of analysts at TD Securities, the FOMC is likely to hold rates steady tomorrow and stress patience and data dependence, in part by removing the last vestiges of forward guidance in its statement.

Key Quotes

“Risks should remain "roughly balanced."

“Market anticipation for a substantive announcement on ending balance sheet runoff is likely misplaced, but we could see Powell hint at the possibility of a larger balance sheet than in past remarks.”

“Modest bear flattening likely in our base case as markets price in just 4bp of hikes in 2019. In FX, acquiesce towards balance sheet flexibility should keep the USD on its backfoot.”