No change is expected in the policy rate from the 30-31 January FOMC meeting. Currently the market seems to have priced in the probability of the FOMC to remain on hold, at 95.0% as implied by the Feds Funds Futures (FFF). Thus market focus is expected to shift to the accompanying statement. We see the case for an upbeat assessment of the economy, despite the recent slowdown of the GDP growth rate. It could be the case, that a more hawkish tone will dominate the statement in order for the Fed to accommodate a possible rate hike in March. At this point, please be advised that the FFF currently imply a probability of ... (full story)