JPMorgan: FOMC Ducks And Covers

JPM saw this week's FOMC meeting as uneventful: "if the FOMC were seeking to avoid getting brought into the news cycle they succeeded".

• JPM notes two "somewhat interesting recurring topics" in the press conference.
• One is asset purchases, on which JPM concludes that "adjusting these parameters, notably extending the average maturity of their purchases of Treasuries, would be an option if the outlook deteriorates. It is less clear if they would take this step should the economy evolve as expected. In any event, we expect to learn more about this topic in the meeting minutes released the day before Thanksgiving."
• The other is emergency lending facilities, which are due to expire on Dec 31, and Powell saying the Fed is "just turning to that question" about extending the facilities. JPM notes "for the expiration date of these facilities to be extended again, not only will the Fed Board have to decide that it is needed, but Treasury will also have to be convinced that it is both needed and legal."