FOMC Preview: Still waiting for the green light

The FOMC meeting this week is unlikely to provide us with much new information. Economists expect to receive a statement but no updated projections or press conference. Along with consensus, and expect no change in policy at the meeting.

"We believe the Fed wants to keep all doors open at this point and will try to signal that a December rate hike is an option but by no means given. If markets keep still after the statement, we think the Fed can declare its mission accomplished", says Danske Bank.

The tone on recent economic developments is likely to be more downbeat than in September but global economic and financial developments should have become less of a risk.

"In our view, the forward-looking part of the statement is likely to be kept broadly unchanged, as the Fed awaits more data before changing its view on the outlook", added Danske Bank.