Halister News

(Bloomberg) -- One possible “hawkish surprise” that could emerge in FOMC’s Nov. 2 statement is explicit guidance about a December rate increase, Credit Suisse chief economist James Sweeney, others wrote in note Thursday.

• Not expecting a rate move next week
• In an “increasingly close call,” expect that Fed will not hike this year; Fed expected to stay “on hold” until 2Q 2017
• In next week’s statement, Fed likely to reiterate characterization of economic conditions, note continued moderate expansion and additional increases in labor utilization; also should maintain view that risks to outlook are “roughly balanced”
• Fed presidents George, Mester, Rosengren seen dissenting again
• Oct. non-farm payrolls should “edge higher”