Markets brace for hawkish message as US Fed meets; some analysts see Dec hike

HOPES that the US Federal Reserve would shift to a more dovish stance this week are fading, and strategists said chairman Jerome Powell is likely to stick to his hawkish tones in Wednesday’s (Nov 1) policy statement.

The central bank is almost certain to continue a hiatus in rate hikes, and leave rates unchanged at current levels of between 5.25 per cent and 5.5 per cent.

Several Fed officials noted that the sharp increase in Treasury yields is discouraging borrowing, and thus performing the job of fighting inflation.