SMRA's Terry Sheehan said FOMC statement....>

US VIEW: SMRA's Terry Sheehan said FOMC statement "offers no surprises and no

hints" as "FOMC maintained the fed funds rate target range at 1.00%-1.25%," as

expected. "Forward guidance still for "gradual increases" in rates, depending on

data," she said. "A rate hike in December is widely expected in markets, but the

statement offered no substantive hints beyond the usual language."

- She cited a "nod to the start of balance sheet normalization as "proceeding",

but it has retreated into the background of monetary policy as policymakers

emphasize that the fed funds rate target is the primary tool to adjust

short-term rates. The assessment of economic conditions was more upbeat with

"solid" growth and continued strengthening labor market and a decline in the

unemployment rate. Hurricanes caused short-term interruption in payroll gains in

September, but at the same time the unemployment rate fell. Hurricane impacts

were touched on as "disruptions and rebuilding will continue to affect economic

activity, employment, and inflation in the near term," but still "unlikely to

materially alter" the economic fundamentals."