FOMC rate decision is a major focus today but there is little expectation on anything dramatic there. Fed funds rate will be held at 0.00-0.25%. The unlimited asset purchase program will continue at a pace of USD 80B for treasuries and USD 40B for MBS. There might be change to forward guidance though, to tie future rate hike to employment and inflation. But the big changes will be held until September.
By September meeting, Fed should have completed the policy framework review. Congress should have passed any additional fiscal stimulus. More information will be obtained regarding the economy, in particular with second wave of coronavirus infections in effect. Updated economic projections will also be completed.
Some suggested readings on FOMC:
