UBS: Fed's Next Meeting Timing 'Awkward,' Not Ruled Out Delaying Meeting for Data

BlockBeats News, November 24th. UBS pointed out that the scheduling of the Fed's next meeting in December faces a previous "awkward" situation: its December FOMC meeting will take place before the release of two key employment reports, which are precisely the core data determining whether to cut interest rates. This has led the market to start discussing a possibility: whether the Fed will postpone its scheduled December 10th meeting by one week in order to have the crucial employment data before making a decision.

Looking back, adjusting meeting times is not unprecedented. In 1971 and 1974, the Fed had postponed meetings due to special circumstances. From a regulatory perspective, the Federal Reserve Act only requires the FOMC to convene at least four times a year, without rigid rules on date adjustments.

UBS pointed out that in history, a single employment report has been enough to change the direction of monetary policy, while this time the Fed is facing the risk of missing two reports. If a meeting postponement does occur, it would increase policy uncertainty but could potentially improve decision quality. (FXStreet)