On Thursday, the U.S Federal Open Market Committee is expecting to keep the benchmark target for rates constant in a range of 2% to 2.25% as the final result of Committee’s 2-day meeting. They announced a policy statement at 2 pm. The statement described a powerful labor market and U.S growth. It would generate a boost in the month of December. Some officials projected in September that suggested less confidence to increase rates 3 times during next year.
Chairman Jerome Powell doesn’t have any press conference until December. Most investors are assuming a roughly 78% chance regarding the empowering of the Fed. The chief economist at Chicago based Stifel Nicolaus & Co., Lindsey Piegza said that she will be looking for a rapid change in tone. She suggested that the economy isn’t moving ahead with its full potential. The FOMC has announced the statement after the conclusion of its entire policy-setting meetings. The statement pointed out the economic outlook of the central bank and its supposed plans to implement.
Much of the statement remains the same from meeting to meeting. Fed watchers deeply analyzed changes between statements to find out how views of the Fed are changing. This method enables to compare the latest statement with its immediate predecessor. It highlights where policy makers have updated their statement. For instance, one line of the FOMC needs a change that business fixed investment has “grown strongly”, following the weakness during last quarter. It would empower the view of FOMC that $1.5 trillion in tax cuts signed by the U.S President Donald Trump.
