SEB Research discusses its reaction to today's FOMC policy statement.
"As we predicted in the Fed Preview, the November meeting did not provide much in the way of additional guidance. The Fed basically repeated its gradual-tightening message. We are sticking to our forecast that the Fed will hike the fed funds rate in December and twice in 2019 (March and June).
The statement did not mention trade policy, a possible adjustment of the interest rate on excess reserves (IOER) or the sell-off in equity markets. We do expect these topics to have been discussed at today’s meeting but we will have to wait until the minutes are published November 29 to get the details. The minutes should also include a discussion about the neutral fed funds rate; a key question for monetary policy," SEB notes.