Details form the October US Fed FOMC meeting 01 November 2017

  • Prior 1.00%-1.25%
  • Balance sheet reduction is proceeding
  • Economic activity has bee rising at a solid pace despte hurricanes
  • Labour market continues to strengthen
  • Core inflation remains soft even though gasoline price rises after hurricanes boosted overall inflation
  • Survey-based measures of long-term inflation expectations little changed on balance
  • Risks are roughly balanced
  • Fed is watching inflation closely

There’s not a lot here but perhaps it’s what’s missing that matters. There’s no real nod to a Dec hike and that might upset a few traders and the dollar. USDJPY trades down to 113.75.

About the only bullish change to the statement from Sep is the reference to the economy “rising at a solid rate” (Oct) vs ” rising at a moderate rate” (Sep).

Fed statement comparison Sep-Oct 2017

Fed statement comparison Sep-Oct 2017

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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