Global Daily: Powellarization ahead of T-Day

The FOMC surprised nobody yesterday by opting to keep the upper band of the Fed Funds rate target unchanged at 4.50% while continuing to tighten monetary policy through balance sheet runoff. While the decision was completely predictable, the meeting was notable for the fact that both Christopher Waller and Michelle Bowman dissented in favour of cutting rates. Our US Strategist Phillip Marey points out that’s the first time since 1993 that more than one FOMC member has dissented against the decision, a polarization that will doubtless grow once President Trump replaces Powell and Kugler next year with hand-picked doves.