December FOMC Preview
The Beginning of the End
I want to look at the FOMC meeting this week in a bit more holistic terms. Because in terms of the actual event, we basically know what is going to happen. They will hike 50bps to 4.5%, the dots will show an increase in the median 2023 funds rate forecas and Powell will echo his favorite Volcker quote in the press conference that the Fed will stay the course until the job is done. “We will stay the course until the job is done.” In terms of the actual day, this seems like the most “boring” FOMC meeting in a while. However, zooming out, there is a lot going on.
Zooming out, there three big things to me going on in fixed income: