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What to expect in today's FOMC meeting

  • Regular
  • Economy
  • 7 months ago
  • 129

The US Federal Reserve will be announcing their decision on interest rates and releasing the minutes of the Federal Open Market Committee (FOMC) meeting later today and most are expecting a 25-basis point increase.

As it is almost a foregone conclusion, investors will be paying close attention to the wording that accompanies the decision and, on the Fed’s updated Summary of Economic Projections which will also be released, the  the term accommodative being emoved from any statements or used in a more dovish manner.

Fed chief, Jerome Powell is largely expected to announce that risks to the economic environment are balanced, however investors will be listening with interest as to whether he addresses trade policy as a major risk to the U.S. economy.

In the absence of any unexpected concerns regarding risks, GDP growth or inflation, the market will be looking at the Fed’s projections for the economy and rates out to 2021.

This will be the first time the Fed will extend its projected rate charts to 2021, where many believe rates will stop rising and level off.

Overall, the rate announcement is likely to be a non-event and investors will look to other economic data releases, the escalating trade war, and emerging markets for direction.

 

 

Source: Smart Trend Team