FXStreet (Delhi) – Michael Sawicki, Senior Economist at Lloyds Bank, suggests that today’s eagerly-anticipated FOMC meeting is expected to produce the first tightening in US monetary policy since 2006. Key Quotes “With a 25bp rise largely discounted - despite volatility in equity and commodity markets over recent days - the market focus will be primarily on the FOMC’s signalling about the future path of policy rates. While the Federal Reserve has stressed for some time that the pace of tightening will be very gradual, we expect this message to be reinforced both in Chair Yellen’s press conference, and through the FOMC’s updated ‘dot plot’ of individual interest rate expectations. Earlier, a data-rich morning session will also see the publication of the UK labour market statistics for the 3 months to October. Alongside the ongoing strength of employment growth, most notable would be the expected easing of wage growth. As readings from October face unfavourable comparisons with strong monthly outturns late last year, pronounced weakness could limit the MPC’s urgency to raise rates still further, if sustained. ‘Flash’ Eurozone PMIs are also due, but are expected to be little changed.” For more information, read our latest forex news.