The following are the expectations for today's FOMC January meeting by the economists at Goldman Sachs, Bank of America Merrill Lynch, Citibank, Barclays Capital and other major banks. GS: GS and consensus have Fed fund rate unchanged at 0.25% and expect further USD10bn reduction in the monthly rate of asset purchases to be announced – split equally between Treasuries and MBS, making them USD+35bn and USD+30bn, respectively. The January FOMC should be fairly uneventful, following significant policy changes made at the prior meeting. We expect no changes to the forward guidance. Although the 6.5% threshold mentioned ... (full story)