The Fed could jolt markets Wednesday regardless of what it does, simply because of the wide divergence in Wall Street views about its move toward more normal interest rate policy.
The Fed this fall enters a period of policy transition, with the final wind down of its bond buying program to be announced in October—and then a slow walk to its first rate hike sometime next year. It is a turning point, around which the Fed will be forced to manage expectations while trying to keep the markets and economy on an even keel.
The divide in opinion is over whether the Fed will alter the language in its post meeting statement to recognize that it is getting closer to the time when it will begin raising interest rates from zero.
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