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Below are Views On FOMC monetary policy expectations by Heena Naik, Research Analyst - Currency, Angel One Ltd

FOMC Monetary Policy Expectations

The FOMC Monetary Policy is set to be released on 3rd Nov 11:30 pm where the central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year. The quantum of monthly bond purchases is expected to be at a rate of $15 billion a month amid a recovery in the U.S. labor market and worries over the inflation outlook. 

Fed Chairman Jerome Powell’s comments will be closely watched for any adjustment in his thinking on inflation which shall drive interest rate expectations. Worries over inflation have prompted traders to bring forward their expectations around the timing and pace of the Fed interest rate increases. Apparently, traders are pricing in as many as three interest rate hikes next year, but in the latest Fed forecast, only half of central bank officials agreed there should be even one.

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