TD Research discusses its expectations for today's FOMC policy decision.
"We expect the FOMC to deliver its third consecutive 75bp rate hike, bringing the policy stance decidedly above its estimate of the longer-run neutral level. We also look for the Committee to provide more hawkish signals through the update of its economic projections and for Chair Powell to build on his Jackson Hole message," TD notes.
"FX: Buy the rumor, sell the fact is a tempting play for the USD, but we are wary that the messaging at this meeting will be more hawkish than usual. Neutral bias and reassess after," TD adds.