Danske Research discusses its expectations for next week's FOMC policy meeting.
"We expect the Fed to deliver a final 25bp hike next week and then maintain the Fed Funds rate at 5.00-5.25% for the remainder of the year. Powell is unlikely to close the door for further hikes, but even with nominal rates on hold, we expect the monetary policy stance to continue tightening towards H2," Danske notes.
"We see modest upside risks to short-term yields, i.e. out to 6M, but with no updated projections, markets' focus will remain on macro data. We expect the Fed to deliver a final hike of the tightening cycle bringing the Fed Funds Rate to 5.00-5.25%. With no updated projections and markets already pricing in around 20bp ahead of the meeting, the main emphasis will be on Powell's verbal guidance," Danske adds.