CIBC Research comments on today's FOMC November policy statement.
"The Fed still looks to be eyeing a hike before the end of the year, but could only be so hawkish on a day it decided to keep rates on hold. Indeed, the FOMC acknowledges that core inflation remains "soft", and that it will continue monitoring developments on the inflation front "closely". However, the statement does note that business investment has picked up in recent quarters, and that economic activity has been rising at a "solid rate" despite disruptions tied to the hurricanes. The FOMC highlights that it continues to expect that growth will track a moderate pace with "gradual adjustments" in rates.
All told, we still see a December hike coming, with disappointments on the inflation front more than offset by respectable results from GDP and the labour market. Little market reaction expected," CIBC argues.