FXStreet (Delhi) – Research Team at Societe Generale, suggests that no policy action is expected during the upcoming FOMC meeting but market participants will be looking closely for clues regarding a possible March rate hike. Key Quotes “Our central scenario assumes a March increase and a total of three hikes this year. Admittedly, March looks like a close call at the moment given the recent slowdown in activity and tighter financial conditions. The statement is likely to acknowledge these developments, giving it a more dovish tone than the December communiqué. However, the FOMC’s outlook for the labor market and inflation is unlikely to change materially, and we expect the statement to characterize the risks to the outlook as balanced (similar to the September statement). In this context, we think it is premature to throw in the towel on a March rate hike.” For more information, read our latest forex news.