Fed Not Expected to Change Policy Course Today

The Federal Reserve’s policy committee concludes its latest meeting on Wednesday with little change expected in its outlook for interest rates but the potential for new details to emerge on the planned exit from its current easy monetary policy.

The U.S. central bank is widely expected to decide on a further $10 billion reduction in its monthly bond buying, staying on course to shutter the program entirely by year end.

It will announce its decision and release fresh economic and interest rate projections at 2 p.m. EDT (1800 GMT). Fed Chair Janet Yellen will hold a news conference to discuss the results a half hour later.

The interest rate “dots” plotting the views of each policymaker will be watched closely for any shift in the expected timing or pace of rate increases, and for whether officials lower their view of the long-run target interest rate in response to a diminished sense of the economy’s potential.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza