Fed is widely expected to keep monetary policy unchanged today. Fed funds rate target will be held at 0-0.25%. QE will continue with the same monthly pace at USD 80B in of treasury securities and USD 40B of MBS. FOMC statement will reiterate that QE will continue until “substantial further progress” has been made.
Fed Chair Jerome Powell could sound a bit more upbeat in the press conference. Though, he would reiterate that Fed is not even thinking about tapering for the moment. He would also emphasize that policymakers need to see improvement in economic actual data, rather than outlook, before removing stimulus.
Here are some previews:
- FOMC Preview – Fed to Deliver Upbeat Message about Economy while Affirming Substantial Progress is Needed to Taper QE
- April Flashlight for the FOMC Blackout Period: Rapidly Strengthening Data, but Is It “Substantial”?
- FOMC Policy Meeting: Policymakers May Keep Their Cards Close to Their Chest
- FOMC Preview: More Wait and See
- A Panoramic View of the US Economy and Dollar in 10 Charts
