Second to last FOMC of the year. No rate........>

FED: Second to last FOMC of the year. No rate change expected from the Federal

Reserve, the FOMC's two-day meeting announces Thursday, no press conference or

summary of economic projections. The speaker blackout period ends Friday at

midnight.

- RBC Capital Markets economists wrote they are "not worried that the next few

Fed rate hikes will be policy mistakes. Instead we worry that the Fed will

shrink its balance sheet too far and that the Fed will push IOER and RRP too

close together."

- "Fed funds keeps rising because more banks are using Fed funds as an LCR

friendly funding source. That trend should continue, keeping upward pressure on

the effective versus other rates," RBC states. "The Fed is likely to respond by

just raising IOER 20bps in December. A November adjustment is very unlikely

because it would look like a 5bp ease in response to equity volatility."