“Markets have to get past Wednesday before anyone makes huge bets, the Street’s looking at the next big obstacle: The Fed”-– Paul Ebeling
Fed policymakers begin a 2-day meeting Tuesday to discuss the US jobs and inflation outlook and craft a policy response about its support for the economy.
The FOMC meeting wraps up Wednesday at 2p EDT. (1800 GMT)
Policymakers will debate the jobs trajectory, now that the VirusCasedemic has begun to recede, and the risk of inflation becoming persistent.
At their last meeting in July, policymakers noted “progress” toward their goals.
Adding an adjective like “clear” or “further” would be 1 way to move closer to a decision to reduce their bond-buying.
Fed policymakers want to separate a decision to taper asset purchases from a later decision to raise their short-term policy rate from near Zero.
In June the majority expected to keep rates where they are until Y 2023 or beyond. This meeting will be the 1st to include forecasts for Y 2024.
This wk’s meeting is the last before changes in Fed leadership that could prove to be anywhere from measured to historic. Depending on pending outlying events.
Have a prosperous day, Keep the Faith!