Jefferies' McCarthy adds "in Sep...>

US TSYS/RESEARCH: Jefferies' McCarthy adds "in Sep 2005 pol statemt," FOMC

acknowledged "effects of Hurricane Katrina and 'the associated dislocation of

economic activity, and the boost to energy prices imply that spending,

production and employment will be set back in the near term.'" So Wed policy

statemt cld make " similar, if more terse, reference to Hurricanes Harvey &

Irma."

- He expects "5) downwrd revisns to SEP FFR projectns. While 2017 projectns are

very likely to be lowered, it is probable" that "2017 median will stay at 1

3/8%, leaving a Dec. rate hike on the table."

- 6/"Modest upwrd revision to 2017 growth projectns. Little changes to out-yrs."

- 7/ Fed Chr Yellen "will remain indecisive about rate normalizatn" and

highlight "uncertainties" from "hurricanes for the econ.and inflatn;" but she

"may join NY Fed Pres. Dudley" and regional Presidents George and Mester to try

to "resurrect expectatns that the Fed will resume rate normalizatn at some pt

after bal. sheet normalizatn has been underway" w/"caveat that "econ evolves" as

anticipated.