ANZ forecasts that the Federal Open Market Committee will announce dot plot cuts

• ANZ are forecasting dot polt cuts at the Federal Open Market Committee (FOMC) meeting next weekexpect the FOMC will lower the 2023 and 2024 dot plot
• dot plot could be cut by 50+bp

Saying that Fed Funds have not reached predicted levels even though inflation is lower

AND predict that:

• Powell will need to maintain hawkish guidance during the transition to lower growth and inflation so is likely to stress patience
• long run estimate for Fed Funds could rise
• extended moderation in inflation is raising confidence that aggregate price gains will return to target
• but progress on inflation is uneven across different cohorts and will take time to become balanced at 2.0%
• Inflation has performed better than the Federal Open Market Committee forecast in September

December Federal Open Market Committee (FOMC) meeting is on the 12th and 13th.

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Earlier:

• FOMC preview: UBS predicts Fed to be cautious, need to protect progress on inflation.

This article was written by Eamonn Sheridan at www.forexlive.com. Source