Here's What The Fed Statement For September May Look Like

Authored by Ven Ram, Bloomberg cross-asset strategist,

The Fed’s policy statement is unlikely to contain major surprises given its focus on quelling inflation, though of interest may be any dissent factor at today’s vote.

One of the more crucial giveaways for traders will be the statement in the second paragraph regarding how highly attentive the Fed is to inflation risks. I expect the Fed to stay with it as any omission would be seen as premature and will immediately loosen financial conditions -- going against the objective of policy makers:

Also of particular interest to markets will be the language “that ongoing increases in the target range will be appropriate.”

(While the Fed may offer hints of smaller hikes going forward, I expect that to come in Chair Jerome Powell’s post-review comments).

Of interest to markets will be any dissent factor.

Esther George may favor a smaller hike. Lisa Cook is also reputed to be a dove.