JCB Expect FOMC Hike in December - But not as much as expected

JCB has written extensively over the year about the FOMC and rate hiking expectations, stating that it was unlikely the FOMC could hike. That stance was lonely in June and September, when majority views indicated a coming rate rise. We are however changing our view on the back of the strong October Payrolls data. JCB expect the possibility of a less than 25bp hike (they used to move in 1/8ths until 1988). We also expect very dovish language to accompany the move, or a possibility of a program targeted at buying long bonds eg twist mark 2