US: FOMC and ADP employment in focus – TD Securities

Analysts at TD Securities are expecting the FOMC to deliver its first rate cut in over ten years, with a 25bp reduction in the Fed Funds target range.

Key Quotes

“Given crosscurrents persist as a threat for the outlook and inflation remains subdued, we look for the Fed to leave the door open to further easing. We expect the statement to show modest, mark-to-market changes and for two of the FOMC voters to dissent.”

“Separately, we'll also have the first look at employment data for July, with the release of the ADP jobs report (mkt: 150k); and further indication of manufacturing activity for July with the Chicago PMI (mkt: 51.0).”