Bank previews ahead of the Fed meeting on......>

FOMC: Bank previews ahead of the Fed meeting on Wednesday are uniformly

expecting a 25bp rate hike to bring the corridor to 1.50% and 1.75%. Yet, nearly

every report uses the phrase "all eyes will be on the dotplots", specifically

whether there are 4 hikes priced into 2018. On this topic, the banks are split. 

- The majority of reports, like Goldman Sachs, suggest that Powell's comments of

'headwinds becoming tailwinds' will be taken onboard by other FOMC participants

and 4 hikes will be in the dotplots, although this is not universal. RBC notes

how some previous doves have come into line with the consensus, including

Brainard.

- Morgan Stanley argue "Change the SEP to include faster growth with

corresponding lower unemployment rate, but leave core inflation unchanged. We

also look for the median assessment of longer-run unemployment to move lower."

However, they see only 3 rate hikes in the dotplots for 2018.