BMO's Ian Lyngen said "main takeaway from...>

US VIEW: BMO's Ian Lyngen said "main takeaway from the FOMC decision" was "Fed

will continue to hike despite the lack of inflation, admittedly an old story.

Very little was changed in the statement, although there were 2 dissents (first

time since Nov 2016, but that was a hawkish dissent).":

- They add "hurricane impacts have faded and the Committee concluded "Averaging

through hurricane-related fluctuations, jobs gains have been solid, and the

unemployment rate declined further. Household spending has been expanding at a

moderate rate, and growth in business investment has picked up in recent

quarters." Language very much in line with the recent statement."

- They added "the two dissents at this meeting were Evans and Kashkari."

- They said in dot-plot, "2017-2019 were unchanged," thus was "very little

follow-through at the front-end of the yield curve. The Fed obviously

incorporated this morning's disappointing core-inflation report into its

decisions and this further points to a willingness to ignore lowflation in favor

of pushing toward future rate-hikes" so this "keeps our flattening bias well in

place and we could see 2s/10s closer to 50 bp as this move runs it course."