US Federal Reserve October meeting: Is a December rate rise locked in?

Depending on interpretation, the US Fed’s October statement contains ammunition for both those who envisage a rate hike in December and those who believe it will be later. The initial reaction from the market has been to view the statement as hawkish since the Fed removed the following wording: "Recent global economic and financial developments may have restrained economic activity somewhat and are likely to put further downward pressure on inflation in the near term". The Fed had added this sentence into the September statement, which helped to calm risk markets at the time. Its removal suggests that the Fed is not as concerned about the US’s growth prospects as it was in September. This and other changes to the wording of the statement suggests a tightening bias, but does that mean the December meeting is ‘live’ and what are the implications for Australia? Nikko AM’s Global Rates & Currencies Strategist, Roger Bridges analyses the statement and explores these questions – read here. (VIEW LINK)