Key points for November FOMC Meeting

Shawn Sng  |   02 Nov 2023  |    43 views


The U.S. Federal Open Market Committee (FOMC) concluded its two-day meeting on the 1st of November 2023. The meeting discussed the Fed’s monetary policy stance and economic projection.



Key pointers to note in this meeting


  1. Second hold-back on the hike cycle – In this FOMC meeting, the committee of the U.S. Federal Reserve (Fed) expressed their view that the current monetary policy stance is seen as restrictive, exerting downward pressure on economic activity. However, they also noted that the full impact of these tightening measures has yet to be fully realized. The committee has also acknowledged that tighter credit conditions, including the increase in Treasury bond yields and home mortgage rates, are placing a burden on economic activities. Therefore, all members of the committee voted unanimously to maintain the benchmark federal funds rate within the range of 5.25-5.50% for a second time. This decision to keep the policy interest rate unchanged was in line with market expectations.


  1. Inflation still hovering above the 2% targeted range – Personal Consumption Expenditure (PCE) which is the Fed’s preferred measurement of inflation has continued to show signs of moderation with the latest Total PCE and Core PCE for September coming in at 3.4% YoY and 3.7% YoY, respectively (a slight decrease from August 3.4%,3.8%) while for Consumer Price Index (CPI), the latest headline CPI and Core CPI for September came in at 3.7% YoY and 4.1% YoY, respectively (a slight decrease from August a well 3.7%,4.3%). Although inflation has shown signs of loosening since the middle of last year, there remains a substantial gap to cover before the Federal Reserve can bring inflation back to its target range of 2%.


  1. Federal Reserve Projection/Guidance – In terms of guidance, there was no dot plot graph provided in this meeting as it is published every quarter. The next dot plot graph will be available in the December meeting. However, a more dovish sentiment was seen in this meeting as the committee noted that persistent tighter financial conditions such as higher bond yields could have implications on the path of its monetary policy, similar to what was seen in this meeting, although optimism for rates to hover at the current level is evident. The committee said that a few months of positive data pointers are insufficient and a period of below-potential growth and some softening of labor market conditions will be required to have a more meaningful guidance in term of what direction monetary policy should take. Therefore, the upcoming unemployment data (3 November 2023) will be one pointer to look out for.


  1. Optimism within the market – With the central bank keeping its interest rates unchanged for a second time in this meeting, the market remains doubtful that the Federal Reserve would increase the interest rate once more. This optimism was felt after the meeting as all three major indices pulled up higher on Friday morning (2 November 2023) with the Dow Jones Industrial Average +0.67% to 33,274.58, S&P500 +1.05% to 4,237.86 and lastly NASDAQ +1.77% to 14,664.91


  1. US treasury yields still remain relatively attractive – With the current high-interest rate environment that we are experiencing, bond yields have been climbing higher. The US 10-year Treasury Yield which is a widely used benchmark/indicator for many investors crossed the 5% range on 19th October 2023 and this is the first time in 16 years since 2007 when it crossed 5.11 in June 2007 (Figure 1). For investors who are looking to lock yields that are trading in the high 4-5% range, this may be a good time to look at US Treasuries as they considered to be among the safest investments in the world, since they are backed by the full faith and credit of the US government and as of 1st August 2023, the credit rating of US government stands at Aaa/AA+/AA+ (Moody’s/S&P/Fitch). US treasury bills are tradable on our POEMS platform. For more information please visit


Figure 1: US 10-Year Treasury Yield Curve

Source: CEIC, PSR


As of 1 November 2023


Figure 2: Market Expectation for Interest rate in the coming months

Source: Bloomberg, PSR

Related Articles

Thomson Medical 5.25% 3yr Senior Unsecured SGD

Thomson Medical recently announced the issuance of its Senior Unsecured notes at final price guidance of 5.25% with a 3-year maturity period.

Shawn Sng  |   06 May 2024

Phillip Macro Update – Key Points for May FOMC Meeting

The U.S. Federal Open Market Committee (FOMC) concluded its two-day meeting on the 1st of May 2024. The meeting discussed the Fed’s monetary policy stance and economic projection.

Shawn Sng  |   02 May 2024

Hotel Properties 5.1% 5yr Senior Unsecured SGD

Hotel Properties recently announced the issuance of its Senior Unsecured notes at final price guidance of 5.1%.

Shawn Sng  |   23 Apr 2024


These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the "Research") contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066