StreetAccount Event Preview: September FOMC meeting • September FOMC meeting ends Wednesday (16-Sep) with release of policy statement (14:00 ET) and Chair Warsh press conference (14:30 ET). Sell side previews broadly expect a 25 bp hike following last week's August CPI report, which did not show the disinflationary trend that some Fed officials called necessary to hold. Previews said policy statement will remain broadly unchanged, continuing to focus on justifying or describing the rate decision and shying away from explicit forward guidance. Street mixed on whether the dot plot would show one hike this year or two, though Warsh (again) expected to offer few details on Fed's reaction function or forward guidance. Given mixed views on disinflation trajectory, economists mixed on rate path ahead. #FOMC# #FederalReserve# #FedMeeting# #FedRateHike# #MarketUpdate# #Macro# #Disinflation# #MonetaryPolicy# #CPI# #InterestRates# Gain immediate access to unparalleled insights with #StreetAccount#:

Monetary policy does not travel only through borrowing costs or the sectors that households touch first. New Dallas Fed research shows it also moves through the web of supplier relationships that ties industries together.

Credibility is monetary policy's secret weapon.⁣ ⁣ If a Fed chair convinces you inflation will be low, you start acting like inflation will be low. Restaurants print lower prices, wages settle down, and the expectation becomes the reality.⁣ ⁣ Belief is half the battle.

RBA BULLOCK SAYS MONETARY POLICY IS WELL PLACED TO RESPOND TO DEVELOPMENTS AND THAT THE RBA IS FOCUSED ON ITS MANDATE TO DELIVER PRICE STABILITY AND FULL EMPLOYMENT, ADDING THAT 'REDUCING INFLATION IS ESSENTIAL'.

🇨🇳China maintains independent monetary policy; FX market remains stable Since August global markets have been choppy but the renminbi has traded broadly stable-to-firmer with two-way swings and China’s FX market has remained orderly, with cross-border flows showing net inflows. Wang Yifeng, deputy director at Everbright Securities’ research institute, said the Fed’s recent hike widened the US–China yield inversion but had been largely priced in and was accompanied by a noticeable rise in US Treasury yields. He described the Fed move as preemptive, aimed at bolstering market confidence amid sticky inflation. Domestic export prospects remain reasonably certain and consumer inflation in China is mild, so the effect of US tightening on cross-border flows is judged manageable. China’s monetary policy remains accommodative with ample liquidity to support real-economy financing, and the renminbi has shown resilience—rate moves in major economies are judged to have limited direct impact on the currency. (