Just a quick preview of the FOMC from Jan Hatzius (head honcho economist at Goldman Sachs)

  • Says the Federal Reserve will deliver cautious commentary
  • But will not shut "the door to a second hike in March"
  • Says financial conditions in the US have tightened
  • Says these conditions will have to ease before the Fedwill hike again
  • Says the US dollar especially needs to fall prior to another hike

This is the financial conditions index Hatzius is referring to:

The index is based on a weighted average of interest rates, spreads, equities and FX. Based on the impact on 1-year forward GDP growth for the US